“With business confidence picking up in major economies and policy loose we added to our moderate overweight positions in equities and would be prepared to add more on seasonal weakness. We remain underweight bonds, seeing little value in long dated gilts. Commodities have been the best performing major asset class this year in sterling terms. Our positioning is broadly neutral, with positive demand developments balanced by excess supply.
With expectations of a December rate hike in America on the rise, we took some profit from our emerging market equity overweight, adding at the margin to Japanese equities which tend to do well when the dollar is strong. The portfolios remain titled towards Japan and the emerging markets and away from Europe, which we see as a Brexit loser.
Sterling continues to fall but the portfolios have benefited from overweighted foreign currency exposure through their overseas equity holdings."
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Directions of arrows show overall change from previous tactical change. For individual portfolio changes, please see factsheets.