Proposed Changes to Your Portfolio:
Our Reeves Confidence Barometer, a major factor in our tactical asset allocation, remains negative.
This means that we believe a fall in the world's equity markets to be more likely than a rise over the coming months.
Impact on portfolio
We remain satisfied that the make-up of our current portfolio is appropriate for this eventuality, so no major changes are required to our present asset allocations.
Our positions of higher levels of cash, property and gold mean that our exposure to equities is lower across all risk profiles than comparable portfolios.
We have ensured that we have picked no fund that is highly correlated with UK markets, due to the uncertainty surround Brexit we feel it is best not to be too influenced by movements in the UK.
Higher risk portfolios remain more exposed to a fall in equity markets.
In 2019 we are attempting to protect our clients money against the falling markets and difficult conditions. We are focusing more on safety rather than growth and are preparing for a tough year.
We aim to allocate more resources in researching specialist opportunities that will have a positive impact on your portfolio performance. We are growing our investment team and have moved into full time analysis of all market movements and more specific research for our clients.
Comments from our recent investment meeting
In our most recent meeting we analysed every individual holding in our portfolio and discussed if they still fit with the objectives of each portfolio. Going into 2019 we will use the results of this discussion to alter the portfolios if we see fit.
19/24 (79.16%) of our individual investment choices between the period of 01.01.18 - 01.01.19 have outperformed the index of the FTSE All Share. We are very happy with this figure and it demonstrates the effectiveness of our investment analysis process. It has been a difficult year for the markets and so it is pleasing to see that we have picked our funds wisely.
All of our model portfolios have outperformed the FTSE All Share this year to date by at least 3.51% as demonstrated in our 'Key portfolio details' feature. We also did some interesting analysis comparing our model portfolios to two of the biggest Discretionary Investment Management firms in the UK. Once again, since the start of the year our model investment portfolios have outperformed their investment selections.
All of our investment decisions are made on a best-endeavours basis and with the of best intentions for our clients, based on our knowledge, analysis & expectations at the time. However, all markets are inherently unpredictable. For clients who are nearing retirement, their pension funds are gradually switched to lower risk model investment portfolios, to avoid exposure to more volatile, uncertain & relatively riskier sectors such as emerging markets. For our longer-term pension fund investors, we take a longer-term investment view
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 2019.