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.
We are not adding significantly to risk despite the more positive news as challenges still remain, but some reduction in cash seems warranted and we are making our move on the Environmental theme.
No changes here, though clearly the addition of the Environmental theme will bring a slight increase in the global equities allocation in most portfolios.
We seem to be inching towards a Brexit deal, though with little time left there are significant differences between the negotiating partners. The area of so-called ‘value’ remains off the pace even after the dramatic bounce of the last few weeks and we will continue to closely monitor the balance between risk and reward in the domestic market.
The introduction of a new theme in the form of the Environment is one we are excited about and position sizes may grow as we increase our conviction and the thesis begins to play out. The funds selected will be chosen with a focus on breadth of opportunity and the usual considerations regarding volatility and valuation.
As stated last month, things look relatively settled here and credit will benefit from the more positive news of late. We are adding to investment grade from cash lower down the risk spectrum – other allocations remain unchanged.
The recovery in many of the investment trusts following the positive Covid-19 vaccine news has been welcome. We are keeping the faith for now, though slightly reducing the position in balanced, which we feel is a little high relative to other areas of risk.
No changes here – we continue to actively look for new ideas in the space.
Cash positions are reduced in some portfolios to fund the changes referred to above.
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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