Proposed Changes to Your Portfolio:

In Brief...

To kick off the new year, the investment team remains focused on interacting with all existing fund managers currently managing assets held in our portfolios. We can use these meetings to ensure that their views on the year ahead are factored into our thinking regarding our goals and objectives.​

On balance, general market sentiment seems to be net-positive; the general consensus is that 2020 will not reward the cautious. Our clients have a long-term investment horizon and as markets have proven, over the long term they rise. The UK in particular has some relative catching up to do with wider global markets and the 'Boris Bounce' is already evident. This optimism supports our reduced cash strategy. That being said, although this is a positive move into the market, we are still not overly positive with our market sentiment.

This move reflects a rise from 15% to 35% confidence, so we are still somewhat cautious.

As Markets have responded well to increased Brexit certainty and most investors appear more optimistic towards 2020, we feel we should move slightly more into the market and increase our confidence in the macro-economic outlook. We do not want to make any rash decisions on the back of short-term movements, nevertheless we feel that for a longer-term view, higher exposure to investments will be beneficial to our clients. Therefore, we have launched our new Tactical portfolios this week. 

While we note the new all-time highs achieved by US equities driven by the relentless rise of technology share prices and buoyant market liquidity, it is fair to say that many other sectors have experienced mixed fortunes. While the US market has however historically done well during election years, investors are still eyeing corporate earnings expectations and share price valuations. In the UK, domestic equities are broadly under owned by investors and are forecast to perform under such circumstances where the UK leaves the EU with a deal. Other opportunities may arise in European markets, where Financial and Manufacturing companies trade on cheap valuations. One caveat here for global market sentiment however is how prospects for China unfold as it continues to re-balance its economy.

We have also increased our positions in certain core specialist funds where we have been long term holders in other portfolios as these have more defensive characteristics coupled with specialist market exposures that will serve to increase diversification of this portfolio.

February 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 (06/12/19 - 13/01/20)

Scottish Mortgage Investment Trust

3.37%

15.21%

Janus Henderson Global Technology

5.03%

10.27%

AXA Framlington Global Technology

5.44%

9.96%

This based on our understandings as of January 13th 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 January 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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