Jennifer Hill and Andrew Pitts

Model Portfolios update: a value revival, but does it have legs?

Fears of a global recession and Brexit uncertainty gave investors lots to fret about and posed fierce headwinds for Money Observer’s model portfolios in the third quarter.

The US-China trade war stoked fears of an imminent recession. The latest raft of tariffs – 15% tax on $112 billion ( £91 billion) of Chinese imports, including clothing and consumer electronics, from 1 September – contributed to a volatile period for stockmarkets.

Model Portfolio Review: Growth stocks propel models back to black

Markets shook off a rocky start to 2018 to return to form during the second quarter – and propel the Money Observer model portfolios firmly back into the black.

All 12 of our portfolios beat the relevant FTSE UK Private Investor index benchmark during the three months to the end of June – some by as much as 3.5 per cent. That saw them recoup losses incurred during the volatility that pervaded investment markets in the first quarter of the year – and then some.