Here’s what happened in our flagship portfolios during the first half of the year:
- Following a challenging 2022, the first half of 2023 has yielded positive results. Performance benefited from maintaining the bulk of the strategic positions held in 2022, particularly US equities, and our in-house stock selection. We have taken profits in strongly performing US equities and allocated these towards low volatility European equities for their defensive characteristics.
- While some 2022 positions contributed to performance, others, which were added in late 2022 to diversify portfolios, have not performed as well. For example, our US low volatility and dividend exposures. However, we maintain our conviction in these positions as these can provide stability in portfolios should there be spikes in volatility in the coming months.
- As we head into the second half of 2023, our portfolios hold a higher-than-normal exposure to high-quality government bonds, with fewer equities and riskier bonds than normal. This is because of the uncertainty around the macroeconomic outlook and the potential market headwinds mentioned above.
Past performance is not a reliable indicator of future returns