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Monthly Portfolio Changes
This month, we made changes to our investments in fixed income, equities, commodities and property. In fixed income, we reduced our underweight allocation to European and Japanese government bonds. Given attractive valuations, we switched into emerging market hard currency and out of emerging market local currency bonds. In equities, we increased our exposure via a combination of smart beta trading strategies and a new tactical allocation in Asian emerging markets. Towards the end of the period, we also increased exposure to commodity equities including an ETF that tracks the performance of companies in the oil and gas sectors. Oil is now technically oversold, and prices do not reflect the positive underlying fundamentals, as the risk of recession remains low. Finally, we reduced our off-benchmark position in property equities.
Please see below our monthly Sterling chart, showing the month end GBP/USD rate of 1.28, 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.