February Wrap update

In February the American Index, S&P 500 reached its first trigger point, and we contacted our Wrap clients to begin the progressive disinvestment out of the North America sector by sheltering a quarter of their US Equity holding from Schroder US Mid Cap Growth.  We recommended that the sheltered amount (a quarter of this fund) should be switched into the following funds on Wrap:
 
15% JPM Natural Resources
15% Marlborough ETF Commodity
26% Marlborough ETF Absolute Return
15% M&G Index Linked Bond,
15% Standard Life Global Index Linked Bond,
14% Schroder Global Property
 
The new funds we introduced
JPM Natural Resources is top in its sector over 3, 5 and 10 years and has been awarded Morningstar’s “Superior” rating, achieving a 47% return over the last 12 months in the energy and basic materials sector. Figures from Money Management March edition show that over 3, 5 and 10 years the returns were 38.1%, 101.1% and 743% respectively.  This fund will help to diversify the Wrap portfolios by smoothing out stock market volatility.
 
Marlborough ETF Commodity is top in its sector over 3 years and is made up of a selection of other smaller tracker funds.  It has achieved 17% growth over the last 12 months and 25% over 3 years.  (5 year figures will be available in July this year). It contains holdings as diverse as grains, energy and precious metals.
 
Marlborough ETF Absolute Return aims to deliver capital growth, at a rate above that of cash, regardless of market conditions.  This fund has produced steady returns over the last 1, 3 and 5 years at 6.7%, 9.1% and 17.3% respectively.  The fund aims to reduce risk relative to the equity funds in our Wrap portfolios.