In January, the FTSE All-World Index modestly climbed by 0.6%. We saw a continuation of the equity returns pattern seen last year, with a large gap between a small number of winners and the rest of the market, and poor performance generally from Chinese equities. A small number of stocks tend to drive the overall market performance, and these technology stocks do not tend to pay a dividend, or if they do the yield is very low.

The model portfolio (USD) gained 0.9%, against the FTSE All-World High Dividend Index that declined by 0.1%.

Merck (+10.8%), AT&T (+7.2%) and BAE Systems (+5.9%) were the best performing stocks held. Diversified Energy (-17.9%), Samsung Electronics (-8.7%) and Admiral Group (-6.4%) were the biggest detractors.