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. It's worth noting that property is 5th best out of 38 investment sectors this year.
Higher risk portfolios remain more exposed to a fall in equity markets.
In 2018 we aim to have higher conviction with greater concentration in our investment selections, reducing them to 20 holdings.
We aim to allocate more resources in researching specialist opportunities that will have a positive impact on your portfolio performance.
Comments from our recent investment meeting
Empiric Student Property PLC - The recent recovery in the share price of Empiric Student Property PLC seems to have coincided with the release of a Trading Update & Notification of Director & Management Change earlier this month. We are pleased that this investment is showing positive signs as the performance has been underwhelming over the past 12 months.
Scottish Mortgage Investment Trust – Once again, this investment trust has performed exceptionally. We are very pleased with the performance and identify this as a long term holding for our model portfolios.
31/36 (86.11%) of our individual investment choices between the period of 06.06.18 - 18.07.18 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.
All of our model portfolios have outperformed the FTSE-allshare this year to date 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 July 2018.