Proposed Changes to Your Portfolio:

In Brief...

Broadly speaking, general market sentiment has continued to be net positive, following on from last month. This is seen as a result of favourable liquidity conditions and specifically the political fog partially lifting from the UK, giving some clarity and confidence. As other financial metrics are equally as important as market sentiment, the Reeves investment team believes that while there are increased opportunities within markets, an amount of caution is to be expected. Therefore, this change in the barometer is best explained as a move in a positive direction, but not a move into positive territory. With this in mind the investment team, however, believes that preliminary analysis and research affords a good foundation to construct the new tactical portfolios around the opportunities and challenges facing the market in the year-to-come.

In executing the plans implemented for the new year, the investment team has maintained the time spent with fund managers both existing and new. In order to ensure the new portfolio changes were well-founded, meetings were arranged  so that any new ‘watchlist’ fund meetings were either in the fourth quarter, or in the early days of the new year. This was in order to ensure that any new opportunities were appraised and included in the change, where appropriate.

Since the Brexit vote in 2016 the UK equity market has been unloved and underowned by overseas investors, fearful of uncertainty surrounding any eventual outcome. However, subsequently improved sentiment following the election result and the ‘Boris Bounce’ has  resulted in positive flows back into the UK market and there is now a generally more optimistic outlook for UK equities relative to overseas equities. We have therefore increased our exposure to the UK equity market in order to capture the relative value on offer.

We have also increased the exposure to bonds - an asset class that is historically inversely correlated to equities. Therefore, in putting cash to work by increasing our exposure to equities, we believe that it is wise and disciplined to maintain portfolio diversification through increasing bond positions as well.


March 2020 Aims 

Market round-up 

Portfolio Key Details: 

Individual Fund Performance: 

  • Top 3 Performers:
  • Bottom 3 performers 

Name of fund

Since January 2020

Since Last Report (28/01/20-20/02/2020)  

Baillie Gifford Shin Nippon

-9.79%

-9.23%

BlackRock Frontiers Investment Trust

-10.23%

-5.22%

Allianz Gilt Yield

3.05%

-0.80%

This based on our understandings as of February 20th 2020. Data sourced from FE analytics.

Reeves Independent Confidence Meter: 

35%

The above meter represents our confidence on the short term prospects of the global equity markets in the upcoming months. Please read our Market Outlook Reports on a monthly basis for more information. 


The information in this blog or any response to comments should not be regarded as final advice. Please remember that the value of your investment can go down as well as up, and may be worth less than you paid in. Information is based on our understanding at February 2020.

Data provided by FE. Care has been taken to ensure that the information is correct but Reeves Independent neither warrants,
represents nor guarantees the contents of the information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Financial Express Limited Registration number: 2405213. Website:www.financialexpress.net

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