The clock's horizontal axis, left to right measures inflation while its vertical axis indicates economic growth. In simple terms, the economic cycle moves through waves, from prosperity to decline, with central banks inflating or deflating monetary policy as a means of stabilising activity within the economy.
Source: Royal London Asset Management, for illustrative purposes only
Tracking the movement through each of the clock's quadrants: Reflation, Recovery, Overheat and Stagflation, can guide rotation across assets and sectors.
The Governed Portfolios and Governed Retirement Income Portfolios (GRIPs) are risk-targeted centralised investment propositions with a strong emphasis on investment governance. The tactical asset allocation of each of these portfolios is delegated to Trevor Greetham by the Investment Advisory Committee (IAC).
Our Investment Advisory Committee (IAC) meets every quarter to review our risk-graded Governed Range and fund range. Read the summary notes from their most recent meetings.
The Investment Clock is just one of a range of tools that makes our tactical strategy more robust and more active based. It also brings an additional layer of expertise and strengthens the investment process of our Governed Range.