WHAT a difference a few weeks can make in markets. Back in early March, our brave IFA contestants must have been cursing the day they agreed to take part in this competition. Most portfolios were down and looked set for further losses.
On 17 Marc
h, the FTSE 100 index plunged to 5,414, a fall of 16 per cent from its start-of-year level of 6,456.9. All was despair.
But by 15 May, the market had rallied to 6,251.8, a jump of 837 points or 15 per cent from the March low. Debate continues to rage as to whether this is a bear market rally – one that will peter out with the market testing new lows in due course – or a recognition that we are truly past the worst of the credit crunch storm and that share prices have largely discounted the aftermath.
Against these highly volatile conditions, our contestants have done well to keep their nerve. Duncan Mackenzie, of Mackenzie Taylor Wealth Management, has taken up the lead with a 4.6 per cent gain in his £300,000 starting portfolio to £313,830. Duncan began the competition with a chunky £135,000 in the L&G Cash fund. He has since fed £37,470 of this into the Standard Life Investments Global Equity Unconstrained Fund (now up to £40,420) and he has also switched £9,880 out of the Swip Gilt Plus fund into Swip Emerging Markets.
Running a close second is Steve Wilson of Alan Steel Asset Management, showing a 4.3 per cent gain to £313,030. His portfolio has bounced up 10.6 per cent since March. Key features are big holdings in Aegon UK Opportunities (£32,380), Aegon UK Equity A (£32,040) and Martin Currie North American (£33,730). But the race is still wide open.
The full article contains 318 words and appears in The Scotsman newspaper.
