Author: Michael James

Portfolio update

I am delighted to confirm that yesterday we completed March’s monthly rebalance for all 14 MPS portfolios across our active and passive ranges.

Backdrop to this month’s tactical rebalance: Within the Global economy, there are signs that a rotation is starting to play out from growth to value. Equity markets rose this month but other major asset classes were down for the month of February. Both US and UK equities performed well but emerging markets fell. Being underweight bonds and overweight UK Equities was positive over the month

The key details of this rebalance are as follows:

We have reduced the allocation to North American equities which has exposure to growth stocks that are sensitive to rising bond yields.
We have increased the allocation to Japan where the exposure is more pro-cyclical.
Overall our Asset Allocation Committee continue to maintain an overweight equity position, based on the medium-term outlook, we believe equities can grind out further gains over the next 12-18 months.
The next planned re-balance date will be 12 April 2021.
In the US, a better-than-expected jobs report boosted the Dow and S&P 500, whereas the Nasdaq fell amid another sell-off in technology stocks. The FTSE 100 was the best performer, rising by 2.3% after the budget promised further fiscal support and revealed encouraging economic data