September 2017 PORTFOLIO PERFORMANCE (%)

Highlights

• All our portfolios generated positive returns for September, with the European markets taking the lead. Equity markets are being spurred by the better than expected economic momentum globally.
• Uptrend in European markets did not stall despite the disappointing election victory of Angela Merkel and her coalition in Germany. The election is a blow towards greater fiscal integration in the Eurozone. However, the economic recovery in Eurozone continues to surprise on the upside.
• Returns from our bond positions suffered as the FOMC meeting in September show a clear shift to tightening monetary policies going forward. Yields suffered even more after the plans for Trump tax cuts were announced. 10-year US Treasuries yields ended the month 10% higher ending at 2.32 percent.
• Gold was our worst performer, but we view the negative return as more of a technical correction. Fundamentally, geopolitical tension remains high with nuclear threats from North Korea. We view gold a safe haven asset and a hedge against geopolitical tail risk.

SEPTEMBER 2017 ETF PERFORMANCE (%)

STRATEGIC ASSET ALLOCATION

INSTRUMENTS FOR PHILLIP ETF MODEL PORTFOLIOS