Quarterly Investment Comment: Q2 2013


A falling currency and continued momentum in risk assets globally saw sterling-based investors in foreign markets reap considerable rewards in Q1 2013. The UK stockmarket was also strong. A falling Sterling juiced foreign equity returns (ex-Japan) by 30-40%. It would be a mistake to extrapolate such returns. Regional market performance was not uniform: In particular, the liquid, developed stockmarkets of the USA, UK and Japan drew investor capital while the fashionable “BRICs” actually fell during the period. Economic readings in the US, in particular, were marginally positive. Conversely, mixed data in large emerging markets like China, India and Brazil, combined with weak commodity markets and a strong US dollar, only served to make the aforementioned “developed market

Risk warnings
This document has been prepared based on our understanding of current UK law and HM Revenue and Customs practice, both of which may be the subject of change in the future. The opinions expressed herein are those of Cantab Asset Management Ltd and should not be construed as investment advice. Cantab Asset Management Ltd is authorised and regulated by the Financial Conduct Authority. As with all equity-based and bond-based investments, the value and the income therefrom can fall as well as rise and you may not get back all the money that you invested. The value of overseas securities will be influenced by the exchange rate used to convert these to sterling. Investments in stocks and shares should therefore be viewed as a medium to long-term investment. Past performance is not a guide to the future. It is important to note that in selecting ESG investments, a screening out process has taken place which eliminates many investments potentially providing good financial returns. By reducing the universe of possible investments, the investment performance of ESG portfolios might be less than that potentially produced by selecting from the larger unscreened universe.