Tactical change - 14 May 2020

20 May 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?

Risk assets generally recovered in April, despite the dire economic data resulting from the lockdown, as investors responded to the unprecedented fiscal policy support from governments and monetary policy easing from central banks. Lower bond yields and reduced inflation expectations supported continued outperformance by high-quality growth stocks. With the strength in global equities, we have trimmed our overweight position slightly, while taking some profits by reducing our underweight in commodities. We maintained our exposure to investment grade and high yield credit; whilst adding to gilts and indexed linked bonds. Commercial property exposure has drifted further underweight.

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.