- Over the past few weeks, the markets have largely remained steady, and our flagship portfolios have maintained their year-to-date gains, ranging between 2-5% depending on their respective risk profiles: as we've seen so far in 2023, portfolios with a higher proportion of equities have demonstrated superior performance; this is due to risk assets, particularly equities, outperforming safer assets.
- The trends we've seen for most of this year have persisted in recent weeks. Larger cap and growth-focused companies, such as those in the technology sector, continue to outperform smaller cap and value-driven equities, like those in the banking and energy sectors. Our flagship portfolios are usually more heavily invested in the former category and less in the latter, which has favourably impacted their performance. Additionally, our carefully selected equities continue to contribute positively to overall performance.
- Looking ahead, we’re maintaining a more cautious stance in the near term, given the nature of market dynamics as economies near the final stages of the cycle, where the potential for heightened market volatility often increases.
Our near-term strategy for flagship portfolios remains:
- a slight underweight equity exposure and slight overweight fixed income exposure,
- a bias towards quality investments within equities, and
- holding more developed market government bonds than riskier bonds within fixed income.
Past performance is not a reliable indicator of future returns.