Tactical change – 22 October 2026
The Multi Asset Team at Royal London Asset Management have made a tactical change to the asset allocation of the Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs).
What’s changing?
Equity markets have weakened as concerns over AI infrastructure spending and softer earnings expectations weighed heavily on technology and semiconductor stocks, with Asian markets leading global declines. Volatility has risen notably, with the VIX recording its largest weekly rise since May. Meanwhile, government bonds rallied as investors sought safer assets, driving yields lower despite resilient economic data and persistent inflationary pressures. Against this backdrop, we are reducing our overweight position in equities and increasing exposure to government bonds, reflecting a more cautious near-term outlook while retaining flexibility should investor sentiment and earnings expectations improve.
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Latest tactical positions
| Overweight | Neutral | Underweight | |
| Equities | Decreased | ||
| Property | Increased | ||
| Commodities | No change | ||
| High Yield | No change | ||
| Government Bonds | Increased | ||
| Index Linked | No change | ||
| Corporate Bonds | No change | ||
| Asset-Backed Securities | No change | ||
| Absolute Return Strategies (including cash) | Increased |
The type of change noted is in relation to the last tactical allocation, position in table is the current tactical weighting of the asset class.
For individual portfolio changes, please see factsheets.