Tactical change - 9 May 2024

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?

With growth data relatively resilient and inflation data remaining stronger than expected, markets have moved to fear that interest rates may stay higher for longer than previously expected. We have moved to a modest overweight position in commodities, which tend to outperform in this macro environment. We remain overweight equities but have taken profits and reduced the size of this position as the macro tailwinds supporting the asset class continue to fade. Elsewhere we remain underweight bonds and property.  

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