In previous editions of our ‘Asset Allocation Journey’ we have discussed how our top-down asset allocation, that is our exposure to equities, bonds, commercial property and cash, has changed over the longer term, and how we have taken an active, research-driven approach to selecting appropriate weightings of these asset classes over a complete business cycle.

Given the extraordinary events witnessed through 2020 and the extreme price moves in reaction to the onset and subsequent recovery from the Covid-19 pandemic, this latest account of the Asset Allocation Journey will cover a much shorter period by firstly explaining briefly what we did in 2018 and 2019.  We will then discuss how we reacted to the pandemic and developments in the macroeconomic environment including major changes in the political landscape in 2020 and how we altered exposure to those four asset classes.

In summary these included:

  1. Increasing the defensiveness of portfolios in 2018 and 2019;
  2. Allocating to Asian and emerging markets and UK equities as markets fell sharply in Q1 2020;
  3. Increasing US equities as equity markets strengthened in Q2 2020;
  4. Making portfolios more resilient in Q4 2020.

 

Read the full Asset Allocation Journey briefing here

About The Author

Ben Williams
Ben joined Saunderson House as an Investment Manager in June 2008. He had previously spent 7 years as a ...
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