Investment Line is a regular investment bulletin produced by Mattioli Woods plc. The communication provides an update on funds, highlights some of the areas we are focusing on, and shares our thoughts on the issues of the day.
The fundamental structure of the portfolios remains unchanged and is geared towards dealing with a very uncertain short and medium term outlook. We are making reductions to property and UK equities in some portfolios.
We remain comfortable with the nature of our overseas exposure for now with global smaller companies being added to for adventurous investors.
The UK is suffering significantly relative to developed market peers and the economy is likely to take a significant hit from the expiry of the furlough scheme. Brexit concerns are back in investors’ minds and an unbiased and objective assessment of our domestic market must be maintained - which means low allocations.
We’re pleased with the performance of our themes but continue to look for additional ideas which can bring something different to portfolios. Over the next few months we will be undertaking detailed research on a number of new opportunities but the investment case must be solid rather than merely novel.
No changes here, the exposure is diverse, and we feel it offers a balance of pure protection and some potential for returns in better conditions.
Yes, many shares are cheap relative to companies’ reported net asset values but is this compelling enough? There is potentially an excellent opportunity here on a long term view but it has to be balanced against the uncertainty for many players in the sector. We are making reductions, but only for defensive and cautious investors.
No changes here – the split between the various categories is part of a “live” discussion as we optimise protection in portfolios.
Cash positions remain unchanged in portfolios.
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.
Mattioli Woods plc is authorised and regulated by the Financial Conduct Authority.