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 have made a number of changes to portfolios following the US election and to reflect some of the key risks on the investment horizon.
We are removing all direct European equity exposure in portfolios, given the political risks ahead. India remains one of our preferred areas and we are building positions there.
We continue to run with very low levels of UK equity exposure. Little clarity has been achieved regarding Brexit, and the domestic economy faces serious challenges.
Healthcare looks attractive with the removal of the headwind of the US election. Our confidence in private equity also leads us to introduce exposure in some lower-risk portfolios. Gold merits increased allocations given the pressures in the global currency system and as an insurance against economic and political risk generally, including inflation.
Though not entirely convinced of the imminent return of significant inflation, we are reducing investment grade holdings to acknowledge the vulnerability of the asset class to changing rate expectations.
We are holding overall allocations for now, continuing to increasingly focus exposure on closed-ended funds and regional property.
Our absolute return funds offer a variety of strategies to maximise risk-adjusted returns, and the allocation looks sensible against the prevailing market backdrop.
Cash is retained at the levels held previously.
Investment Line is written and edited by members of the Mattioli Woods Group Investment Committee, and is for information purposes only. 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.
Mattioli Woods plc is authorised and regulated by the Financial Conduct Authority.