Portfolio commenced 1st June 2011
Objective:
To substantially outperform cash whilst aiming to reduce downside risk. Please note that whilst we aim to achieve positive returns over three-year rolling periods, there is no guarantee that such a return will be achieved over this or any other period.
Strategy:
Actively managed and may be all equity, all bonds or all cash. It normally invests in a wide range of ETFs to gain significant diversification and exceptional liquidity at very low cost.
| Top 10 Holdings | % of Portfolio |
|---|---|
| iShares Core UK Gilts UCITS ETF | 15.2 |
| ISHARES II PLC-USD TREAS BD 7-10YR | 13 |
| VANGUARD INV SER-UK GILT UCITS ETF | 8 |
| Invesco GBP Corporate Bond UCITS ETF | 7.2 |
| iShares Core MSCI EM IMI UCITS ETF | 6.6 |
| iShares Core £ Corp Bond UCITS ETF | 5.8 |
| Amundi UK Equity All Cap UCITS ETF | 5.4 |
| SPDR Sterling Corporate Bond UCITS ETF | 5.1 |
| Lyxor Smart Overnight Return UCITS ETF | 5 |
| iShares Core FTSE 100 UCITS ETF | 4.8 |
| No. Holdings | Yield to Maturity | Maturity | Duration | S&P Rating |
|---|---|---|---|---|
| 155 Govt. Bonds 1,486 Corp. Bonds | 5.17% | 8.51 | 5.91 | A |
| No. Holdings | Best Dividend Yield Forward 12m | Best Price to Book Forward | Best P/E Ratio * | Best LTG EPS |
|---|---|---|---|---|
| 4,721 | 3.1% | 1.8 | 15.1 | 12.4% |
| SCM 50/50 Bond Reserve/Absolute Return | 7.3% |
|---|---|
| UK Corp Bonds (iBoxx Large Cap TRI Index) | 9.9% |
| UK Equities (MSCI UK) | 10.5% |
| UK Gilts (Bloomberg UK Govt All>1 Yr) | 10.9% |
| Japan (MSCI Japan) | 12.4% |
| UK Index-Linked Gilts (Barclays UK Infl Linked) | 13.2% |
| Europe Excl UK (MSCI Eur. Ex UK) | 13.4% |
| US Equities (MSCI USA) | 16.0% |
| Em Markets (MSCI EM) | 16.9% |
| Asia Pacific Ex. Japan (MSCI Asia Ex Jap) | 19.0% |
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Source: SCM Private LLP
May marked a noticeable shift from April’s turmoil to a period of measured recovery and macro recalibration. Despite the formal implementation of US import tariffs and a sharp military escalation between Israel and Iran, market volatility receded. Equities made gains, credit spreads stabilised, and inflation data was less than forecast. With the Federal Reserve holding rates steady and bond markets remaining orderly, risk assets showed resilience. While several firms, including Ford and Hermès, announced price increases in response to tariffs, headline inflation remained muted. Core goods prices ticked up slightly, but services continued to be the dominant contributor to CPI. Most economists now expect any tariff-related inflation to emerge more clearly during the second half of the year.
The chart below shows asset performance across major global markets in May:
Oil Spike, Market Restraint
Geopolitics took centre stage in May as hostilities intensified between Israel and Iran. Brent crude oil experienced one of its largest weekly jumps since the late 1980s. Remarkably, this did not trigger broader market turmoil. Equities rallied, volatility fell, and bond yields held steady – a stark contrast to the April’s Liberation Day tariff shock.
This disconnect illustrates that investors are differentiating between localised geopolitical risks and systemic shocks. Without a sustained disruption to oil supply chains or evidence of inflation acceleration, markets have been quick to look through short-term conflict.
SCM Portfolios: Steady and Selective
SCM portfolios remained conservatively positioned. We continue to underweight overvalued US growth stocks and maintain strong allocations to high-quality government bonds, particularly UK gilts and US Treasuries. Our framework, as outlined in the blogs How Far Can You Stretch an Elastic Band Before it Snaps? and When the Elastic Band Snaps, remains highly relevant in guiding allocations as macro momentum unwinds across key sectors. As we move into the second half of 2025, key themes to monitor include delayed tariff inflation, policy divergence between central banks, and margin resilience at the corporate level. SCM remains focused on valuation discipline, risk management, and selective rebalancing.
Alan Miller, Chief Investment Officer
18 June 2025
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The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the past performance is not a guide to future returns. Exchange rates may cause the value of overseas investments and the income arising from them to rise or fall. Neither MoneyShe nor SCM Direct gives personal advice. We aim to provide investors with simple, understandable information so they can make fully informed decisions. If you are unsure about the suitability of our investment portfolios, please contact an independent financial adviser. The information contained on the site may not be reproduced or distributed in any format without the express written approval of SCM Private LLP. We improve our products and advertising by using Microsoft Clarity to see how you use our website. By using our site, you agree that we and Microsoft can collect and use this data. Our privacy policy has more details. MoneyShe and SCM Direct are trading names of SCM Private LLP, which is authorised and regulated by the Financial Conduct Authority to conduct investment business no 497525. Registered in England and Wales, OC342778, with its registered office at Michelin House, 81 Fulham Road, London, SW3 6RD. © 2024 SCM Private LLP. All rights reserved.