2016 June Economic Review
UK Highlights

• GDP growth 0.40% Quarter on Quarter growth 2016 Q1
• CPI inflation has been recorded at 0.30% in April 2016, a reduction of 0.20% from March
• For January 2016 to March 2016, 74.2% of people aged from 16 to 64 were in work, the highest employment rate since comparable records began in 1971.
• The unemployment rate for January 2016 to March 2016 was 5.1% lower than a year earlier (5.6%).
GDP quarter on quarter growth
We show the long-term trend in the first chart and the last 10 years in the second chart:

CPI Consumer Prices Index

Unemployment Rate

Investment Markets – Update

In May, most Unit Trust and OEIC sectors posted positive returns, with Property and Global Bonds negative at 0.53% and Emerging Markets and Asia Pacific (Excl. Japan), giving back some of the gains achieved year to date. We expect the theme of increased volatility across markets to continue through 2016.

Below we provide a table of the major sectors that we allocate to when constructing our client portfolios. The data has been sorted over 1 month in order of best to worst returns. We have shown returns on an annualised basis for 1 year and above.

Sector 1m 3m 6m 1yr Ann. 3yr Ann. 5yr Ann. 10yr
UT UK Index –
Linked Gilts Retail TR in GB 1.96 0.81 2.07 1.59 4.62 6.69 6.48
UT UK Gilts Retail TR in GB 1.43 0.46 3.77 4.54 4.12 5.05 4.76
UT European Smaller Companies Retail TR in GB 1.35 4.15 5.47 4.68 10.54 8.64 8.55
UT UK All Companies Retail TR in GB 1.25 4.42 -0.15 -5.65 5.03 6.64 5.35
UT North America Retail TR in GB 1.05 2.64 2.23 1.76 9.66 11.52 8.18
UT UK Smaller Companies Retail TR in GB 0.99 5.31 0.55 1.94 10.73 10.17 7.94
UT Japan Retail TR in GB 0.91 4.00 0.20 -2.48 5.98 8.20 2.30
UT Sterling Corporate Bond Retail TR in GB 0.62 3.62 2.16 1.22 3.16 5.01 3.89
UT North American Smaller Companies Retail TR in GB 0.42 4.14 -0.48 -2.81 6.79 9.12 8.55
UT Sterling High Yield Retail TR in GB 0.38 6.25 2.17 -0.52 2.55 4.21 5.12
UT Targeted Absolute Return Retail TR in GB 0.30 0.15 -0.75 -0.75 2.23 2.38 3.89
UT Europe Excluding UK Retail TR in GB -0.01 3.55 0.97 -3.02 5.41 5.52 5.37
UT Property Retail TR in GB -0.53 1.68 2.12 3.27 6.52 5.34 1.67
UT Global Bonds Retail TR in GB -0.53 0.48 4.62 3.30 0.46 2.41 4.31
UT Asia Pacific Excluding Japan Retail TR in GB -0.96 4.03 3.29 -10.32 0.15 1.87 7.86
UT Global Emerging Markets Retail TR in GB -2.60 5.49 2.91 -11.55 -3.99 -2.20 4.93

Source: FE Analytics – % growth to last month end 31.05.2016

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