Tavistock Wealth Literature
Dynamic Planner Literature
Monthly Portfolio Changes
This month we made a number of changes to our equity and fixed income investments. At the beginning of the month, we sold our satellite position in Japanese equities, which went on to underperform the benchmark in January. Within our core smart beta equity allocations, we rotated our exposure from minimum volatility to quality. The quality factor favours companies with stable and high-quality earnings that tend to outperform during periods of positive but slowing economic growth. Within fixed income, we increased duration in the portfolio by adding to our existing positions in global government bonds and long-dated US Treasuries. Whilst we remain underweight duration overall, we feel it is prudent to reduce the size of our underweight at this time. 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 1.31, which is below the 1, 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 1.50 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.