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 currently focusing on, and our thoughts on the issues of the day.
We remain cautious - our opportunism is evidenced by our decision to add Indian bonds into portfolios.
No changes here – equity markets are expensive pretty much wherever you look and current allocations reflect a sensible balance between caution and remaining exposed to those areas of the global economy which offer genuine opportunities.
PM May’s gamble failed and the UK is left looking both politically and economically vulnerable going into Brexit negotiations. No case for increasing holdings.
Our lack of belief in the case for global growth means portfolios heavily feature specialist allocations where we feel companies can benefit from key themes in the investment universe and are likely to grow irrespective of wider macro-economic developments.
Rate hikes and rich valuations are cause for concern but things look OK for now. Our interest in general emerging market debt is added to through the Indian bond exposure discussed above.
We are holding overall allocations for now, continuing to focus exposure on closed-ended funds and regional property, expecting the income to be most of our return in 2017.
As part of the ongoing process of reducing absolute return allocations as and when we see interesting opportunities, we are cutting allocations here in some portfolios.
Cash is retained at the levels held previously other than in balanced portfolios where we are using cash to fund the Indian bond purchase.
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.
