Investment Line: our current thinking on asset allocation - April 2023

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.

20 April 2023
2 Minutes

We are maintaining our overall outlook – adding some additional resilience to our equities positions in places, and remaining especially vigilant.



A range of sectors have seen modest reductions to fund our global equity income positions. Most of the macro focus is on the US, given its significance for monetary policy across the globe but our spread of geographical holdings looks about right.


We are comfortable with our UK exposure relative to other holdings. The recent inflation data has been rather alarming and suggests rates may yet move higher, putting further pressure on the domestic economy, but larger cap names look reasonably well protected and valuations in the smaller space are sufficiently undemanding to keep us involved.


We are trimming the (significant) infrastructure holdings in lower and moderate risk portfolios. The growth challenges set to unfold over the next year also see us reduce the global smaller companies allocations in some areas with our large cap, value and defensive exposure receiving a boost from our move to global equity income.


Having added to bond exposure over the last year, we are holding fire for now given the persistence of inflation and pressures from rate rises. The risk of high levels of Government issuance does cause us concern but our US treasuries look credible for now.


Persistent inflation and rate pressures will continue to challenge the property space. The commercial real estate sector in the US is particularly troubled and we are cautious on the wider space, though significantly lower valuations and niche opportunities mean we are maintaining positions for most.


We have a small range of options we like, which bring an extra dimension to portfolios.


Tactical cash is increased in some areas and levels remain elevated as we wait for better opportunities to emerge.


Click here to read our thoughts on the current market.

If you wish to receive our Investment Line next month, follow the link here.

Investment Line is written and edited by Chief Investment Officer Simon Gibson and Investment Strategist Richard Smith 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.

Share on social
FacebookTwitterPintrestWhatsappLinkedInFacebook Messenger
Get in touch with the Mattioli Woods team
Do you have a specific question or query? Find the right member of the
Mattioli Woods team.