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 continue to add more risk exposure to most portfolios, albeit in a careful and measured manner.
The global recovery story appears well founded, if not a runaway train – we are adding some global and European exposure where appropriate.
The UK seems well placed to benefit from the wider recovery in markets and some of the style trends re-establishing themselves. There are interesting opportunities across the market cap spectrum, and we are adding to UK smaller names in more cautious portfolios, which had no exposure previously.
No change to the balance of thematic ideas and exposure in portfolios.
Bond yield movements have caused concern in the last month and there is still a question mark over the diversification to be provided by Treasuries. For now, though, we think the moves are contained and the day of reckoning for bond markets is not yet imminent.
Allocations remain unchanged – our diversification by sector should provide support. Alongside property, we own infrastructure as part of our “real assets” allocations.
Again, we reduce uncorrelated exposure given the opportunities we see elsewhere. We will use alternative strategies as and when we feel they offer us something different to other asset classes.
Cash is being reduced in most portfolios to enable the changes outlined.
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.