Investment Line is a regular bulletin produced by Mattioli Woods plc to provide an update on portfolios, a highlight of areas we are focusing on, and our thoughts on issues of the day.
No change made to portfolios this month.
Diversification remains crucial here at a time when there are question marks emerging over global trade. Many equity markets have regained some poise after the volatility-led sell-off in early February, yet investors remain unsettled.
A transitional Brexit period was hailed as good news; for us, little has changed, and we remain materially underweight.
Our preferred, long-term themes should prove useful in a more challenging environment. These niche allocations serve to complement the more geographically-oriented positions we have in portfolios and allow us to seek out long-term value in a world of elevated equity prices.
We continue to have discussions about our fixed income allocation and any vulnerability to a rising rate environment, but are holding fire for now.
While the income component remains attractive, we are constantly reassessing the investment case given rising global bond yields and challenges for the UK economy.
The range of strategies we employ here has been helpful in providing us with protection against the sell-off in risk assets.
We continue to hold some cash for opportunities that may emerge, but the asset class in itself remains deeply unattractive. Where we have held more in defensive and cautious portfolios, this has clearly been helpful of late.
Investment Line is written and edited by members of the Mattioli Woods Asset Allocation Team, 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 fall as well as rise, and investors may not get back the full amount invested. Past performance is not a guide to the future.
Mattioli Woods plc is authorised and regulated by the Financial Conduct Authority.