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.
No changes to asset allocations this month, but this does not reflect the level of debate and scrutiny of ideas that have been ongoing at this difficult time.
We maintain the existing allocations. Areas of relative value may open up in the coming months, which could present opportunities. Sterling could play a part for UK investors.
For now, the pressure remains on UK equities, though better times may lie ahead. Sterling seems to be reflecting the possibility of a sensible solution being reached between the UK and the EU, but it is too risky a proposition for most overseas (and many domestic) investors today. Events are likely to bring change (either way) to the outlook here.
We are increasingly attracted to opportunities in the environmental space revolving around clean energy and technology solutions (and more besides). Once we feel the time and valuation point are right to initiate positions in portfolios through the most suitable vehicles, we will make our move. This is not about fads, which we have been careful to avoid; it is about longer-term sustainable returns from investing responsibly.
Looks relatively settled for now – the possibility of a more inflationary policy mix may mean that changes have to be made in the medium term, but no changes this month, and any signs of negative rates in the UK may even present opportunities.
The balance of our exposure remains unchanged – depending on the outcome of the talks with the EU, some elements of the sector will either perform well in the short run or remain under pressure. The bigger picture remains unchanged – as ever, there are areas that are more interesting and some to avoid/mitigate as far as possible.
No changes here – we continue to actively look for new ideas in the space. As mentioned earlier in the specialist section, we are cautious around new ideas for the sake of it.
Cash positions remain at the levels of the previous month.
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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