Tactical change – 12 March 2020

17 March 2020

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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? 

Stock markets have declined sharply in reaction to the coronavirus outbreak. We have reduced equity exposure in view of further downside risk to the world economy, but we retain a small overweight as we see this shock as ultimately temporary - investor sentiment is extremely depressed and valuations are more attractive. We also moved underweight commodities. We added to government bonds and commercial property, and increased corporate and global high yield bonds at wider spreads as we expect them to offer resilience. When recovery comes, we are likely to add to equities again because of the additional stimulus in the system.

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.

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.