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.
No changes to portfolios this month, but there are a number of ideas being discussed that may be introduced to portfolios in the coming months.
We are maintaining the same balance across geographies at this stage. Given how 2020 has panned out, returns year to date are, in places, astonishing.
Possibly the most frustrating equities market of all. Valuations look so attractive if we can get some sustained positive newsflow and this may be at hand. That said, the economy feels strained and there is no guarantee historic discounts to other regions will narrow dramatically. Not a good year for UK equity heavy investors.
The opportunity to add some extra value to portfolios through specialist themes looks real and we are discussing a number of ideas. For now, existing strategies are working well with our environmental theme the most recent addition.
We continue to discuss the merits of all of the elements of this asset class. Credit looks better positioned than it did and although there are concerns over sovereign debt and the diversification it may or may not provide, US treasuries look OK for now.
Property is a beneficiary of both progress on the vaccine front and the likely resolution of the talks with the EU. Delays to a return to economic normality caused by a spike in infection rates could, of course, be unhelpful for sentiment short term. It has been a tough year for this asset class.
The strategies here remain extremely varied.
Cash positions are retained at the same levels.
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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