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Another Solid Year from Appian


Investors in Appian Funds enjoyed another good year in 2014 as our multi-asset and equity portfolios delivered strong absolute returns and navigated successfully through what were at times challenging market conditions.


2014 Fund Returns

Appian Value Fund    +9.72%

Appian Equity Fund   +10.7%

Appian Small Companies Opportunities Fund   +12.04%


These performances follow on from equally good numbers in 2013 and mean that the Appian Value Fund for example has returned close to 8% p.a. on average in the past three years.

While 2014 was ultimately a positive year for financial markets, along the way there were several challenges which led to bouts of volatility and significant market weakness. In both October and December for example we saw falls of 6-7% in global equities. Throughout 2014, financial markets had to contend with issues such as conflict in the Ukraine, economic crisis in Russia, continued Eurozone fears including Greece, advance of ISIS in Iraq and Syria, Ebola outbreaks, Scottish referendum as well as many others.

However the underlying support for equities came from continued low interest rates and improved corporate performance. Underlying company profits in aggregate grew in most developed markets in 2014 as profit margins held up in the face of sluggish top line growth.

Our Multi-asset Appian Value Fund also benefitted in the year from good performance from our allocations to both Property and Forestry.

For 2015, we believe interest rates will remain low albeit with slight rises in the US and UK. Corporate profits are also forecast to grow in 2015. This is pivotal as we believe valuations in stock markets are well up with events and though they can be supported by this low interest rate regime we need to see earnings move ahead for markets to make progress. We believe they can, but there is little by way of a buffer in valuation terms so we may well see spikes of volatility as we did in 2014.

Many of the challenges that faced financial markets in 2014 remain intact in 2015 and no doubt new headwinds will emerge. 

Our focus in Appian remains constant; to build and protect capital through investing in quality assets while remaining vigilant to risks on the downside. Our approach to asset allocation is truly dynamic and in selecting stocks we, as always, look for solid balance sheets, strong free cash flow, healthy dividends and effective management teams that can drive a business forward.

We look forward to 2015.

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WARNING: The value of your investment may go down as well as up. Past performance is not a reliable guide to future performance. These investments may be affected by changes in currency exchange rates.

Appian Asset Management is regulated by the Central Bank of Ireland. No part of this document is to be reproduced without our written permission. This document has been prepared and issued by Appian Asset Management on the basis of publicly available information, internally developed data and other sources believed to be reliable. It does not constitute an offer or an invitation to invest, or the provision of investment advice. No party should treat any of the contents herein as advice in relation to any investment. While all reasonable care has been given to the preparation of the information, no warranties or representation express or implied are given or liability accepted by Appian Asset Management or its affiliates or any directors or employees in relation to the accuracy fairness or completeness of the information contained herein. Any opinion expressed (including estimates and forecasts) may be subject to change without notice. 

Appian Unit Fund Prices  
2 January 2015 

Appian Value Fund 131.69 

Appian Equity Fund 145.93 

Appian Small Companies Opportunities Fund 147.10 

Appian Liquidity Fund 106.48


For more detailed information on each of our funds click here
 


 
John Mattimoe
Head of Equity Analysis
 
Patrick J Lawless
Managing Director
Pat Kilduff
Head of Economic Analysis
Eugene Kiernan
Head of Investment Strategy
Frank O’Brien
Non-Executive Director
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Copyright © 2015 Appian Asset Management, All rights reserved.


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