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An “Event-Full” year.


For investors, 2016 was marked less by economic fundamentals and more by a series of seismic events that impacted both markets and market sentiment. Events that, in truth, have yet to play out to their full extent. 

At the start of the year, concerns over Chinese growth and a tumbling oil price saw global stocks lose 15% of their value in euro terms in the first six weeks. While markets slowly recovered, the first half of the year also brought us the lead up to the “Brexit” vote in the UK and its surprise outcome. This led to a short-term negative reaction in stock-markets with a more significant impact on Sterling, which immediately lost c. 12% on a trade weighted basis. The final few months of the year saw bond prices fall as investors began to price in some degree of monetary tightening and nascent inflation principally in the US, and markets also weighed up the prospect of a Donald Trump administration. In the near term, equity markets have chosen to focus on the growth bias in the President-elect’s rhetoric and we have seen a strong finish to this volatile year.

While US equities were strongly positive in the year, in Euro terms, both Europe and UK have been broadly flat. We produced positive returns across our funds in 2016 despite the heightened volatility in markets building on solid performance over the past three years. 

 

Our multi-asset funds such as the Appian Value Fund continue to benefit from solid diversification across a range of asset classes while our equity funds continue to be built upon core principles such as financial strength, superior cash flow and attractive valuations.

The financial market signposts for 2017 are reasonably clearly marked. There is a wave of critical elections (that we know of) in Europe, as France, The Netherlands and Germany go to the polls, and given the recent outcomes in the UK and the US, investors will take very little on faith in advance of the results. In the US, the Federal Reserve will look to walk a fine line with a series of interest rate increases that don’t choke economic growth or drive the currency too high. We will also see how the rhetoric of the Trump campaign trail meets the reality of Washington politics and while 2017 may see some move on corporate tax rates, much of the spending proposals will take longer. The influence of the new US administration on the world stage may serve to heighten rather than dampen “geo-political risk” given the early glimpses we have seen and the heightened tensions in regions such as Syria and the South China Sea.

2017 should be another year of improving global growth and forecasts are for an improving bottom-line for companies as profits are expected to grow in excess of 10% according to consensus. This is a reasonably benign backdrop for markets as they look to navigate the events outlined and others.

We believe the core qualities and solid diversification within our funds leave us well positioned to steer a course through any market uncertainty and to do so, as we always have done, with substantially lower levels of risk. 

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The information contained in this material is not financial advice. Nor does it constitute an offer for the purchase or sale of any financial instruments, trading strategy, product or service. No one receiving this material should treat any of its contents as constituting advice. It does not take into account the investment objectives, knowledge, experience or financial situation of any particular person. You should seek advice in the context of your own personal circumstances prior to investing or taking out any product from your own independent adviser.
 
This material has been prepared and issued by Appian Asset Management Limited on the basis of publicly available information, internally developed data and other sources believed to be reliable. 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 Limited 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. 

If you decide to invest in the Appian Unit Trust, further information in relation to all risks is provided in the Fund Prospectus and supplements. This material is available from Appian Asset Management Limited, 42 Fitzwilliam Place, Dublin 2. If you invest in the Appian Unit Trust, you may lose some or all of the money you invest. The value of your investment may go down as well as up. This investment may be affected by changes in currency rates. 

References to past performance are for illustrative purposes only and are not a reliable guide to future performance. Projected returns are estimates only. Forecasted returns depend on assumptions that involve subjective judgement and on analysis that may or may not be correct. 

The above disclaimer and limitations of liability are applicable to the fullest extent permitted by law, whether in Contract, Statute, Tort (including without limitation, negligence) or otherwise.
 
Appian Asset Management Limited is regulated by the Central Bank of Ireland. 
 

Appian Unit Fund Prices  
3 January 2017 
Appian Value Fund
Appian Equity Fund
Appian Small Companies Opportunities Fund
Appian Liquidity Fund
Appian Ethical Value Fund
140.20  
173.32   
190.75
106.21   
99.45

For more detailed information on each of our funds click here

Patrick J Lawless
Chief Executive Officer
Eugene Kiernan
Head of Investment Strategy
Frank O’Brien
Consultant
John Mattimoe
Senior Fund Manager
 
Lisa Neary
Fund Manager
Niall Dineen
Senior Fund Manager
Click here for more information about our Investment Team
Kevin Menton
Director
Tel: (01) 662 3989 direct
Click here to email Kevin
John Flavin
Senior Relationship Manager
Tel: (01) 662 4053 direct
Click here to email John
Pat Kilduff
Senior Relationship Manager
Tel: (01) 662 3985 direct
Click here to email Pat
 
Cillian Quinn
Client Relationship Executive
Tel: (01) 662 4055 direct
Click here to email Cillian
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