Tactical change – 18 October 2018

25 October 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?

A selloff in global equity markets has pushed our investor sentiment indicator deep into panic territory; in response, we began contrarian purchases of stocks, as our models are constructive on world growth and risks related to inflation and interest rates do not seem strong.

We also increased commodities exposure following recent underperformance, while remaining below benchmark. These purchases were funded from government bonds and cash.

With US fiscal policy loose, interest rates low elsewhere in developed markets and China easing policy, we expect the global economic expansion to continue into 2019 and this to be supportive for equities.

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

 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: 22 Nov 2019

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