Tactical change – 8 January 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 had a strong end to 2025, marking a third consecutive year of double-digit returns. Despite increasing focus on Artificial Intelligence, US stocks underperformed the rest of the world in 2025. EM and Asia Pacific shares were the top performers, benefitting mainly from USD weakness, cheap starting valuations and a strong rally in Asian tech. As we enter 2026, we remain overweight equities as the short-to-medium term economic outlook remains supportive, with broadening economic growth and looser fiscal policy. Elsewhere, we are overweight commodities, and neutral on bonds, as we continue to monitor geopolitical and fiscal developments.
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
| Overweight | Neutral | Underweight | |
| Equities | No change | ||
| Property | Decreased | ||
| Commodities | No change | ||
| High Yield Bonds | No change | ||
| Government Bonds | Increased | ||
| Index Linked Bonds | Increased | ||
| Corporate Bonds | Decreased | ||
| Asset-Backed Securities | No change | ||
| Absolute Return Strategies (including cash) |
Decreased |
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.