Tactical change - 13 August 2020

19 August 2020



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 equity returns were positive in July, although UK-based investors were impacted by sterling strength. While there were renewed spikes in Covid-19 cases, these were managed with travel restrictions or local lockdowns. Otherwise, data suggested that leading economies are recovering reasonably well. Central banks are maintaining low interest rates and governments are committed to fiscal stimulus. To reflect this positive environment, we have increased our overweight in equities and moved overweight in commodities. We remain overweight in investment grade and global high yield credit, but have cut gilts to around neutral. We remain underweight in UK commercial property and cash.

The article, Governed Range: How we manage Property exposure during the period of suspension, explains how we are managing Property allocations within the Governed Range portfolios while the Property fund is suspended.

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.

High Yield      
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.

About the author

Trevor Greetham

Head of Multi Asset at Royal London Asset Management

Trevor Greetham is a portfolio manager at Royal London Asset Management. Prior to joining Royal London in 2015, Trevor was asset allocation director for Fidelity Worldwide Investment, where he was responsible for implementing tactical investment decisions across a wide range of institutional and retail funds including the Fidelity Multi Asset Strategic Fund.

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.