Here’s how we’re positioned in our flagship portfolios:
- Given the above market backdrop, our flagship portfolios continued to generate positive returns, extending the gains experienced so far this year. Our strategic positioning and equity selection continue to be tailwinds, whilst our more cautious near-term views and diversifying fund positions (US defensive value) have been headwinds.
- Taken together, we believe our overall asset allocation is a sensible combination to cushion possible downside risks in challenging markets: our strategic exposures do capture the rising trend in equity markets; our tactical tilts moderate some of the upside but also act as a mitigating factor should markets turn.
- In recent weeks, we have discussed our defensive near-term asset allocation positioning which remains focused on quality within equities and fixed income.
- In terms of equity strategy, we continue to take profits in strongly performing segments where valuations appear stretched, while reallocating to more defensive parts of the market such as low-volatility European stocks.
- Elsewhere, we are keeping our position in Asia-Pacific equities including Japan, which should benefit from the trends mentioned in our Markets section above.
Past performance is not a reliable indicator of future returns.