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.
The core views on asset classes are unchanged this month – most markets look high after enjoying a strong run.
Our preferences are largely unchanged. The developments in India combined with our high exposure there have led us to a slight reduction in portfolios in favour of Japan, where we see greater value.
The UK continues to do well as both domestic and overseas investors return to the market. Compared with many global peers our progress with the vaccine has been impressive and the resolution of other headwinds has helped greatly. The economy is of course not the same as the equity market, but they do have a relationship.
Allocations to our preferred themes are maintained. Though new ideas may present themselves, the current allocations look sensible given the prospects and challenges ahead.
Yields have now moved such that Treasuries can be argued to offer a bit more diversification. We need adequate duration exposure (to rates) to benefit from any improvement in prospects but without so much that we suffer from any sell-off. We seem fairly positioned in this respect.
Allocations remain unchanged – our diversification by sector should provide support.
We are reviewing both the headline asset category and the funds we have available to fill allocations, so changes may occur in the coming months.
Cash remains unchanged.
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.