Tactical change – 12 July 2018

17 July 2018
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?

Our Investment Clock may enter its ‘Stagflation’ phase during summer, as inflation tracks slightly higher while global growth cools, especially outside the US. Stocks are flat year-to-date after a burst of volatility that marked a global growth peak; a deteriorating economic backdrop and talk of trade wars signal further volatility.

We continued to take profits on our equities position, where the overweight is the lowest since 2012, and reduced our overweight commodities allocation; the proceeds were moved into government bonds and cash, reducing underweights. We are modestly overweight global equities, global high yield bonds and commodities.

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    
Property    
Commodities    
High Yield    
Gilts    
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: 20 Jul 2018

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