2019 was a big year for TAM. From growing our Investment Management and Distribution teams, to launching a new European office – some may have expected performance to lag as a result. As you will be able to tell from the figures below however, this is certainly not the case.
Market movements in 2019 were driven by political influences possibly more than ever before, with 2020 looking like it may very well follow suit. A lesson we’ve learned is that equity market rallies tend to be particularly fragile when bolstered by such factors and should be approached with a cautious attitude – the ‘Boris Bounce’ is a prime example of this, with markets reacting positively to a decisive election win and then retracting at the uncertainty of an upcoming EU departure.
With a positive year across all of our strategies, whether it be active or passive, mainstream or specialist, our portfolios looked positive against their benchmarks. A good case study to illustrate this is our Balanced accounts (typically 50% equity exposure), as they are in the middle of the risk spectrum and best represent our client base. Across all mandates these accounts returned an average of 11.49% in 2019, which is a 4.23% average outperformance of the benchmark.
|
|
Historical Return |
Volatility |
||
|
Premier Portfolio |
1 Year |
3 Year |
5 Year |
Annualised |
|
Defensive |
8.07% |
10.56% |
13.96% |
2.84% |
|
Cautious |
11.18% |
12.81% |
18.44% |
4.82% |
|
Balanced |
13.02% |
12.74% |
21.21% |
6.30% |
|
Growth |
14.65% |
16.03% |
25.16% |
8.15% |
|
Adventurous |
17.78% |
15.20% |
24.65% |
9.62% |
|
Speculative |
20.05% |
18.09% |
29.14% |
10.05% |
|
|
Historical Return |
Volatility |
||
|
Focus Portfolio |
1 Year |
3 Year |
5 Year |
Annualised |
|
Defensive |
7.81% |
7.53% |
12.57% |
2.86% |
|
Cautious |
9.41% |
9.22% |
17.96% |
4.01% |
|
Balanced |
10.59% |
11.84% |
25.49% |
5.49% |
|
Growth |
12.42% |
14.09% |
24.86% |
6.99% |
|
Adventurous |
12.19% |
15.06% |
28.13% |
8.08% |
|
|
Historical Return |
Volatility |
||
|
Ethical Portfolio |
1 Year |
3 Year |
5 Year |
Annualised |
|
Defensive |
5.08% |
6.09% |
11.80% |
3.41% |
|
Cautious |
8.86% |
9.45% |
13.30% |
5.15% |
|
Balanced |
12.83% |
15.79% |
22.16% |
6.32% |
|
Growth |
17.43% |
19.53% |
27.90% |
7.52% |
|
Adventurous |
21.31% |
24.58% |
39.72% |
8.39% |
|
|
Historical Return |
Volatility |
||
|
Sharia Portfolio |
1 Year |
3 Year |
5 Year |
Annualised |
|
Defensive |
6.11% |
3.50% |
22.99% |
5.83% |
|
Cautious |
8.39% |
5.18% |
31.13% |
6.66% |
|
Balanced |
9.95% |
7.44% |
32.94% |
6.76% |
|
Growth |
12.79% |
11.61% |
39.96% |
7.54% |
|
Adventurous |
16.15% |
20.21% |
51.97% |
8.74% |
Source: TAM Asset Management Ltd. TAM portfolio return from 1st January 2015 to 31st December 2019 net of TAM's management fee. Past performance is not a guide for future returns and investors may get back less than their original investment.
This performance was achieved without trying to second guess short-term market movements caused by the political backdrop, increasing equity exposure or taking on unnecessary levels of volatility, but instead through sticking to our tried and tested strategy of defensive management to provide accretive risk-adjusted returns over the long-term.
For more information or to speak to us about our portfolio performance, please get in touch with our Business Development Manager, Joseph Terry, via phone: 0207 549 7662 or email: joseph.terry@tamassetmanagement.com.
