Tavistock Wealth Literature
Dynamic Planner Literature
Monthly Portfolio Changes
This month we made a number of changes to our fixed income, equity and commodity investments. In fixed income we increased exposure to high yield debt via ‘fallen angels’ which are companies at the top end of the junk bond market. This provides some degree of credit protection whilst also allowing us to take greater duration risk relative to the benchmark. We also switched our emerging market exposure from hard to local currency debt as we see H2 upside in emerging market currencies. In equities we increased emerging market exposure via new positions in Latin America, Mexico and Russia and sold commodity equities, specifically those companies in the timber/forestry and oil/gas sectors. We did not make any changes to our investments in properties this month.
Please see below our monthly Sterling chart, showing the month end GBP/USD rate of 1.27, which is below the 1, 5, 10 and 20-year averages. The chart also highlights Sterling’s purchasing power parity (PPP) as well as Capital Economics’ forecast for a return to 1.50 by the end of 2020.
The value of an investment in the Protection Portfolios, ACUMEN Portfolios or Tavistock PROFILES may fall as well as rise. Past performance should not be seen as an indication of future performance. Source of data: Tavistock Asset Management Limited, Thomson Reuters and Lipper for Investment Management unless otherwise stated.