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.
A difficult outlook for sure, but the portfolios are positioned with a strong acknowledgement of the challenges being faced.
The balance of the equities exposure looks about right – we are focusing our most defensive allocations on quality global names in a slight reorganisation.
Sterling is finally showing some weakness after what always looked to us like unsustainable strength. The increased virus measures are going to act as an additional headwind for business and we are finding it difficult to enthuse about our domestic market, though select opportunities always exist of course. There is a significant discount on UK equities right now … though many say they are cheap for a reason.
We have been spending a significant amount of time looking at new ideas for portfolios but with a discerning approach. We hope to provide an update soon on some of the opportunities we have uncovered – these may find their way into client portfolios shortly.
Developments on the inflation front will have a major influence on positioning here but we are making no changes just yet. Some cash for defensive and cautious investors is being used to top up short duration credit.
Valuations are broadly supportive and our favoured assets are priced at discounts, reflecting the challenging backdrop enough to justify maintaining positions.
No changes here.
Cash positions remain unchanged in most portfolios, though as detailed above we are adding to short duration credit lower down the risk scale.
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.
Mattioli Woods plc is authorised and regulated by the Financial Conduct Authority.
