Tactical change – 2 June 2016

8 June 2016
Trevor Greetham, Head of Multi Asset at Royal London Asset Management, has made a tactical change to the asset allocation of the Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs).

What’s changing?

"We have further trimmed our overweight positions in both equities and corporate bonds, while adding to government bonds and cash-benchmarked strategies.  

Stocks tends to be volatile over the summer months and may well correct in response to a range of risk factors, including concerns around the UK European Referendum vote and the potential resumption of US interest rate rises.  However, we remain positive on equities as we are seeing some evidence of a recovery in global growth and cutting to a small overweight will give us greater flexibility to exploit any dips in the market.

In terms of our tactical positioning, we remain overweight in European and Japanese equities, areas we feel will benefit both from that looser policy and a return of gradual dollar strength.  We remain underweight UK and US equities and maintain our broadly neutral allocation to Asia Pacific ex Japan and emerging markets."

Keep up to date with Trevor’s latest views

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.

Latest tactical positions  

 OverweightNeutralUnderweight
Equities    
Corporate Bonds    
Index Linked    
Property    
High Yield    
Gilts    
Absolute Return Strategies
(including cash)
   

Directions of arrows show overall change from previous tactical change. For individual portfolio changes, please see factsheets.

Last updated: 22 Jun 2016

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