Tactical change – 6 December 2018

14 December 2018

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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?

Markets remain volatile, driven by political and economic news including the US Federal Reserve signalling that interest rates are near a neutral level and President Trump conducting trade and tariff negotiations with China and Europe.

On a longer term view, we expect global economic expansion to continue into 2019; while rates may be slowly rising in the US, they remain relatively low. With this constructive background, we continued to buy equities, increasing our overweight. With volatility expected to remain high, we also expanded the government bond allocation, funded from commodities, high yield corporate debt and cash.

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.

 OverweightNeutralUnderweight
Equities    
Property    
Commodities    
High Yield    
Gilts    
Index Linked    
Corporate Bonds    
Absolute Return Strategies (including cash)    

Directions of arrows show overall change from previous tactical change. For individual portfolio changes, please see factsheets.

Last updated: 14 Dec 2018

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