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 changes to asset allocation this month with our cautious approach justified by ongoing economic and political uncertainties. We remain broadly invested.
Europe looks better than it did but not sufficiently so for us – global markets look too calm for comfort.
It looks as if the Conservatives could win a very substantial majority, but it is far from a done deal. The ongoing Brexit saga will dampen enthusiasm for some time to come.
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.
Fixed income is likely to benefit from renewed scepticism over the strength of the global economy – we remain comfortable with our existing exposure.
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.
We have started to reduce allocations in this area whose attractiveness was flattered by the unusual conditions prevailing in other asset classes. This will be a gradual process and we will target those funds that have failed to explain their disappointing performance last year.
Cash is retained at the levels held previously.
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.
