ACUMEN ESG Protection Portfolio
Tavistock Wealth Literature
Dynamic Planner Literature
Monthly Portfolio Changes
In January, we made three changes to the portfolios. In fixed income, we rotated our allocation to investment grade credit out of Europe/US and into the UK where valuations look relatively attractive, particularly around the 10-year maturity. We also purchased EM Local debt and sold EM Hard Currency debt as global markets remain flush with liquidity and should benefit from a weaker US dollar. This trade also brings our overweight emerging market debt positions more in line with the benchmark. In equities, we sold our position in Indian equities and purchased a new position in Taiwanese equities. The Taiwan stock market has a high exposure to the semiconductor industry, which is forecast to re-accelerate in 2020. Taiwan also stands to benefit from shifting supply chains. We did not make any changes to our investments in commodities or property this month.
Please see below our monthly Sterling chart, showing the month end GBP/USD rate of 1.32, which is below the 5, 10 and 20-year averages. The chart also highlights Sterling’s purchasing power parity (PPP) as well as Capital Economics’ forecast for a return to 1.45 by the end of 2020.
The value of an investment in the Protection Portfolios, ACUMEN Portfolios or Tavistock PROFILES may fall as well as rise. Past performance should not be seen as an indication of future performance. Source of data: Tavistock Wealth Limited, Thomson Reuters and Lipper for Investment Management unless otherwise stated.