INVESTMENT LINE: OUR CURRENT THINKING ON ASSET ALLOCATION – JULY 2021

There is a lot happening but we making only minor changes this month as we take stock of the unfolding investment landscape.

OVERSEAS EQUITIES

We are reducing our exposure to China in some portfolios with Europe being the main beneficiary.

UK EQUITIES

The UK looks relatively well placed, though disputes with the EU over Brexit are far from over and could yet cause issues for investors.

SPECIALIST

Our thematic exposure remains unchanged with a wide range of ideas in portfolios. If attractive opportunities present themselves in new areas, we will seek to accommodate them.

FIXED INCOME

Inflation fears have receded a little over recent weeks and the market seems more focused on growth concerns at present. Of course, this can change, but we are making no changes to fixed income.

PROPERTY

Allocations remain unchanged – our diversification by sector should provide support.

ALTERNATIVE STRATEGIES

Our protective asset allocation remains unchanged, but we are slightly trimming alternatives in some portfolios.

CASH

Cash is unlikely to offer much in the foreseeable term but maintaining some “dry powder” seems sensible. Cash remains a good discipline for investors.

Investment Line is written and edited by members of the Mattioli Woods Group investment committee and is for information purposes. It is not intended to be an invitation to buy, or act upon the comments made, and all/any investment decisions should be taken with advice, given appropriate knowledge of the investor’s circumstances. The value of investments and the income from them can go down as well as up, and you may not get back the amount invested. Past performance is not a guide to future returns.

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