Tactical change – 7 June 2018

7 June 2018
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?

Our Investment Clock remains in its ‘Overheat’ phase, with greater risk of inflation, although there are indications of economic weakness outside the US.

We expect stocks to trade in a range over summer; investor sentiment, having been very fearful in February, is now neutral. After capitalising on weak markets in the first quarter to increase equity exposures, we have been taking profits on our overweight position as prices recovered, moving the proceeds into cash.

Longer term, we remain positive on stocks but more cautious on government bonds. We are moderately overweight global equities, global high yield bonds and commodities.

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.

Latest tactical positions

 OverweightNeutralUnderweight
Equities down arrow    
Property     up arrow
Commodities no change    
High Yield no change    
Gilts     no change
Index Linked     no change
Corporate Bonds no change    
Absolute Return Strategies (including cash)     up arrow

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

Last updated: 07 Jun 2018

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