Tactical change - 26 January 2023

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?

Global growth is slowing while inflation shows signs of peaking which leaves the business cycle in reflation. We believe bonds can be supported further in this environment and maintain a modest overweight position in the asset class, having added further to credit. We have also added to our overweight position in equities given the risk that recent positive momentum could carry on in the short term. We have reduced the size of our underweight position in commodities; recession risk remains but resurging demand in China reduces downside expectations. We maintain an underweight position in commercial property.

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.