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.
No further changes this month – we feel our most recent changes leave us well positioned to navigate 2018.
No fundamental change in outlook here, but concerns about Japanese Yen strength in a risk-off period, coupled with an opportunity to take profits, means we have made slight reductions in some portfolios.
Jeremy Corbyn’s move to support a customs union post-Brexit and the ongoing issue of the Irish border suggest problems ahead for the UK Government, and therefore more uncertainty economically. Already low allocations have been trimmed for some portfolios.
After very significant deliberation, we have decided to introduce a technology exposure in our medium and higher-risk portfolios. We feel the long-term opportunities in the space are beyond doubt and though there is a vulnerability to further equity market falls, skilled fund managers have better prospects for realising returns here than they do in less-focused geographical allocations, which we are using to fund these positions.
No changes for now. There are reasons to be concerned about the asset class as the Federal Reserve begins to tighten policy, but we feel our exposure is sensible.
Following some earlier reductions in allocations, we are making no further changes. The low correlation to other asset classes should provide some support, though we balance this against some concerns over the domestic economy.
Our absolute return and structured products allocations are now joined by an exposure to managed futures. All of these strategies are distinct and offer different ways to protect clients while allowing for continued participation in markets.
Cash levels remain unchanged this month. Recognising the lack of “return” from this asset, we nevertheless feel a “no loss” asset, in capital terms, has some value.
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.
