Tactical change - 13 October 2016

19 October 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?

“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."

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 

High Yield    
Index Linked    
Corporate Bonds    
Absolute Return Strategies
(including cash)

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

Last updated: 17 Nov 2016

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