“Global equity markets have continued to rise on the back of firm economic data with the Brexit vote and UK economic uncertainty having a limited impact internationally. We are adding at the margin to our equity overweight, directing funds towards Asian and emerging markets likely to benefit from loose US monetary policy with the Fed on hold until after the US elections. We also brought commodities up close to their benchmark weight on the basis that recent oil price weakness has been supply driven.
UK bond yields dropped sharply after the Bank of England’s aggressive easing move in August. We responded by selling back some of the gilts and index linked gilts we bought last month. This leaves us moderately underweight fixed income, albeit overweight credit. We see very little value in government bonds at these levels but see no immediate trigger for a significant rise in yields with the Bank of England and other central banks either on hold or in easing mode. We remain underweight sterling.”
You can access up to date views from Trevor on the market and the movements of the Investment Clock on our Latest Investment Clock updates page.
|Absolute Return Strategies
Directions of arrows show overall change from previous tactical change. For individual portfolio changes, please see factsheets.