Monthly Portfolio Changes
This month we made a number of changes to our equity and fixed income allocations. In equities, we cut our exposure to Eastern Europe and European financials and initiated a new position in commodity equities. We purchased an ETF that tracks shares in gold producing companies, which are currently trading at attractive valuations. In fixed income, we reduced exposure further to emerging market local currency debt as part of a broader risk reduction programme.
Please see below our monthly Sterling chart, showing the month end GBP/USD rate of 1.30, 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 1.45 by the end of 2019.
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.