Overview Top 10 Holdings Fixed Income by Asset Class Underlying Holdings Key
Statistics – Fixed Income Equities by Region Underlying Holdings Key
Statistics – Equities Last 3 Years Annualised
Volatility Performance After Fees Growth of £100,000 Rolling Return Fees & Charges Monthly Asset Allocation
Changes and Market
Commentary Key Themes
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Overview
Latest Factsheet and Market Commentary as at 30 September 2026 Portfolio commenced 8 June 2009 OBJECTIVE:
To outperform inflation.
STRATEGY:
Actively managed with a long-term bias to real assets e.g. equities. The Portfolio normally invests in a wide range of ETFs to gain significant diversification and exceptional liquidity at very low cost.
Overall Asset Allocation Top 10 Holdings
| Stock Short Name | Percentage of Portfolio |
|---|---|
| Amundi UK Equity All Cap UCITS ETF | 10.4 |
| iShares Core FTSE 100 UCITS ETF | 9.4 |
| Vanguard U.K. Gilt UCITS ETF | 8.4 |
| iShares Core MSCI EM IMI UCITS ETF | 8.3 |
| iShares Core UK Gilts UCITS ETF | 8.3 |
| Invesco RAFI US Fundamental Value UCITS ETF | 7.8 |
| State Street SPDR Bloomberg 15+ Year Gilt UCITS ETF | 6.9 |
| State Street SPDR Bloomberg Sterling Corporate Bond UCITS ETF | 4.3 |
| Vanguard FTSE 250 UCITS ETF | 4.3 |
| iShares $ Floating Rate Bond UCITS ETF GBP Hedged | 4 |
| Number of Holdings | Yield to Maturity | Maturity | Duration | S&P Rating |
|---|---|---|---|---|
| 143 Govt. Bonds 1,770 Corp. Bonds | 5.33% | 10.06 | 6.36 | A+/A |
| Number of Holdings | Best Dividend Yield Forward 12m | Best Price to Book Forward | Best P/E Ratio | Best LTG EPS |
|---|---|---|---|---|
| 7,654 | 3.4% | 2.0 | 13.1 | 12.9% |
| Long-Term Return | 7.5% |
|---|---|
| Asia Pacific Ex. Japan (MSCI Asia Ex Jap) | 18.30% |
| Em Markets (MSCI EM) | 17.3%% |
| Japan (MSCI Japan) | 14.60% |
| US Equities (MSCI USA) | 12.50% |
| Europe Excl UK (MSCI Eur. Ex UK) | 11.10% |
| UK Equities (MSCI UK) | 9.40% |
| UK Index-Linked Gilts (Barclays UK Infl Linked) | 8.78% |
| UK Gilts (Bloomberg UK Govt All>1 Yr) | 7.00% |
| UK Corp Bonds (iBoxx Large Cap TRI Index) | 5.20% |
Performance is based on the monthly performance of the first client discretionary portfolio after all charges. Individual client portfolios may differ due partly to differences in the timing of initial investment or withdrawals or rebalancing. The SCM/MoneyShe Long-Term Return (£) Benchmark is inflation (the return of the UK RPI All Items Index). Competitor data is based on the performance of the IA Mixed Investment 40-85% Shares Sector and the comparison is offered as a guide only.
Rolling Return
| 12m to 30/09/2021 | 12m to 30/09/2022 | 12m to 30/09/2023 | 12m to 30/09/2024 | 12m to 30/09/2025 | 12m to 30/09/2026 |
|---|---|---|---|---|---|
| 19.8% | -11.7% | 11.0% | 12.6% | 10.7% | 12.3% |
Source: SCM Private LLP
Past performance is not a guide to future returns. The value of investments and the income from them can go down as well as up, so investors may not recover the amount of their original investment.
Fee & Charges
| ALL Fees & Charges | Percentage |
|---|---|
| SCM Discretionary Fund Management Charge | 0.40% |
| Underlying ETF costs (KIID Ongoing Charge) | 0.17% |
| Transaction Costs of buying/selling funds | 0.12% |
| Transaction Costs within funds | 0.05% |
| Custody & Administration Fee | 0.12% |
| Total Fees & Charges | 0.86% |
The bond market stopped being ignored. Equities ended the quarter near their highs, but government bonds fell across the board. The 10-year US Treasury yield rose for a seventh consecutive month, the longest run since 2011, and ended September at 5.28%, its highest since 2007. Brent rose 14% in September and 42% over the quarter; gold fell 6%.
The chart below shows September across the world’s major assets: oil and Brazil at one end, precious metals, the DAX and Hong Kong at the other.
Seven months of dearer money
Every major central bank tightened in the third quarter: the Federal Reserve for the first time since 2023, the ECB alongside it, and the Bank of Japan at its fastest pace since 1990. US Treasuries fell 3.2% over the quarter, and euro-area sovereigns 4.4%. Equities held on, narrowly: the S&P 500 made a new high on 6 October, with 40% of its members lower than in March. US inflation has risen to 3.7%. As we said last month, the risk lies in borrowing, not in share prices.
Oil, gilts and the Budget
With Hormuz still contested, Brent ended the quarter at $103.53, and the six-month forward price is at a record. The market is pricing a prolonged disruption, not a spike. In the UK, this comes a fortnight before the 28 October Budget. Borrowing is £8.1bn above the OBR’s profile, and the 10-year gilt reached 5.44% on 7 October, a 19-year high, with markets pricing a Bank Rate rise from 3.75% to 4.75% by next summer.
We think much of the alarm is misplaced
The UK was the fastest-growing G7 economy in the first half; 10-year gilt yields are two percentage points above inflation and barely one above their average since 1711; and some analysts expect just one more hike, followed by cuts. Yet 48% of fund managers remain underweight in bonds: we believe the crowd is on the wrong side.
SCM Direct/MoneyShe Portfolios: what we changed, and why
On 17 September, we trimmed Japan by three percentage points and broad, index-weighted emerging markets by four, and introduced two emerging-market income holdings, each at 2%: the Invesco FTSE EM High Dividend Low Volatility ETF and the iShares EM Dividend ETF.
Japan is no longer cheap at 18 times earnings as the Bank of Japan tightens. The broad emerging-market index trades at 14.6 times with a 2.1% yield, and nearly 40% is technology, the AI trade in another wrapper, as Korea’s 7% fall on 15 October showed.
The average constituent of the two new holdings trades at 9.4 and 8.7 times, yields 6.1% and 6.8%, and is built on banks, utilities, energy and telecoms. We swapped a slice of the most expensive, most crowded part of emerging markets for the cheapest, highest-yielding part, with no change to our overall emerging-market exposure.
The remaining three points went into long-dated gilts, taking the SPDR Bloomberg 15+ Year Gilt ETF from 4% to 7%: AA-rated bonds yielding 5.9% at an average price of 60p in the pound, which will revert to par as they mature. Overall equity exposure falls from 60% to 57%.
We do not chase records. The styles we favour, namely low volatility, quality, dividends and value, lagged the rally all year and now trade at depressed valuations; September’s changes lean further towards them. We remain focused on capital preservation, valuation discipline and genuine, look-through diversification.
Alan Miller, Chief Investment Officer
21 October 2026