Tactical change – 15 August 2019

23 August 2019
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?

Global equities rose for the sixth month this year in July as the Federal Reserve cut US interest rates in response to slowing growth. While the US-China trade talks showed few signs of progress, investors remained hopeful of a resolution. Given muted inflation, we expect monetary easing by central banks to trigger a mini cyclical upswing.

We have taken advantage of short-term market weakness to move more overweight in equities, increasing our underweight in commodities; and, as bond yields declined to new lows, have reduced our holdings of government, corporate and global high yield bonds.

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: 23 Aug 2019

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