MarketsFlow portfolio performance web-chat for week ending 25 October, 2019

Hi all,
Here is this week’s portfolio performance and our YouTube Portfolio Performance for week ending October 25, 2019.

Portfolio Performance for week ending October 25, 2019:

MarketsFlow Managed High Growth Portfolio: Weekly Returns 0.55%, Since inception 6.86%, Annualised Figures 19.30%
MarketsFlow Managed Growth Portfolio: Weekly Returns 0.59%, Since inception 7.27%, Annualised Figures 20.68%
MarketsFlow Managed ISA Portfolio: Weekly Returns 0.37%, Since inception 4.58%, Annualised Figures 11.69%

Have a lovely weekend!

I really like the excitement of the new products in the offing. A Futures Portfolio product will be a really interesting addition with great potential. Something that has simply not been an available or realistic option for many investors previously, so that I think it will further illustrate MF’s mission of rolling back the frontiers of investment management democratically.

The niche for a savings product is a great idea, but will have to be very carefully thought through. There is obviously a considerable gulf between the returns on traditional savings accounts & the potential return on any of MF’s portfolios, so that the incentive for “savers” is very clear.

If an investor paid say £10 per month in to an MF ISA, or High Growth GIA though, are they “saving” or paying funds in to an investment “feeder” account. I don’t think a term such as “savings account” can be readily used for any product that actually has the potential to go down as well as up!

Certainly Monzo with around 3 x million & Revolut with 6-7 million customers, must have significant numbers underwhelmed and deterred by current savings returns & more than just interested in the returns available from the MF Portfolios.

Certainly one to put more thought in to.

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Given current interest rates in some countries, some people’s savings accounts are going down. Both in nominal and real terms!

But anyway great points @Curious1

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James you are dead right - I’ve not come across any organisation that highlights its annual interest rate on savings accounts, then shows this less the prevailing inflation rate.

A really good example of savings rates in the UK at the moment is that the Nationwide Building Society has a special loyalty offer for 15-year members offering 1.1% paid once a year. As you say you are giving away your capital for the privilege of saving with them.

There are legions of very frustrated savers out there, with a trend towards them taking greater risk to obtain some sort of return. And the future for savers seems bleak, with strong indications of an environment of declining interest rates.

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In my view it has pushed a generation into much riskier investments than they should or would otherwise have made. Up until recently it has been OK as the business environment was still positive. However we are starting to see businesses folding and taking out smaller businesses around them (those in the supply chain that are reliant on them). Investors in alternative products are starting to feel it (defaults in P2P lending are on the rise). In the next financial crisis I imagine there will be a lot more investors that lose their shirt, aka the pensioners that invested everything in Sirius.

Anyway I think once the dust settles and MF has a clear track record of positive results through strong risk management, it’ll open the floodgates for new clients!

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