Adventurous Tactical 2020 Changes

 

Portfolio & Date Overview of changes

V20C

04/09/20

This change reflects a move to a more defensive position. As per the ‘Adventurous’ attitude to risk, we kept the adventurous portfolio in the V20B allocation, which represents more exposure to equity markets and more opportunity to benefit from growing world markets. While summer months bring less liquidity and volatility as fund managers take their annual leave, October onwards traditionally brings more fund movements and market volatility. On top of the historic trend, spikes in Covid cases in UK and elsewhere, the looming US and election and Brexit deadline only add to the uncertainty and volatility expected. As such Reeves Investment Committee have created the V20C portfolio, which looks to protect the gains made in the last few months, while still maintaining exposure to growth-based markets. This change has seen a reduction in our exposure to UK & Overseas equities, allowing an increase to cash. V20C also has an increased gold exposure which acts as a defensive asset as well as protection against inflation.

V20B

09/03/20

 

This change represents an increase in market exposure. Countries across the world have began to announce their responses to the Coronavirus, with cancellations of major sporting events and countrywide lockdowns expected. Although markets have been in freefall with Covid cases spreading, strong government responses are likely to be positive news for markets with optimism that these measures will slow down the spread. After more than three weeks of consecutive losses in global markets, we now believe this represents an exceptional buying opportunity with very attractive prices in almost all sectors. Many market commentators and analysts alike have touted this as a ‘once in a generation’ buying opportunity, with the market likely to bottom out after its largest fall since the financial crisis. After discussions between the Reeves Investment Committee the new V20B portfolio will see a reduction to the cash allocation, with this going towards increasing the exposure to Overseas equities which we believe have very high growth potential when the market begins to recover.
V20A

27/01/20

This change represents an increase in market exposure. Brexit and the US-China trade war can be considered one of the biggest drags on market performance through 2019 with both providing large uncertainty and concerns among investors. Although both are by no means out of the picture, much of the uncertainty surrounding both have been removed, giving investors a clearer picture of what to expect in 2020. The Conservatives winning last month’s election paves the way for Boris Johnson to lead the UK out of the EU, meanwhile a phase 1 agreement between US and China reduces tensions and provides optimism of further advancements in talks later down the line. Reeves are looking to benefit from the better investment prospects with a reduction in cash & bond allocation and an increase in UK & Overseas equities.
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  • 14 September, 2020