DAA change: reduce cash, increase fixed interest and international equities
With equity and bond markets repricing quickly we’ve again deployed some cash into high quality assets that are now trading at more reasonable valuations.
We’ve held off increasing our bond exposure for a few weeks as there appeared to be some positive momentum in the market, but with long rates now reaching reasonable levels we’ve moved to be neutral fixed interest.
We remain underweight equities, but we’ve added exposure to selected markets that are at lower valuations than normal due to high energy prices, as we expect these prices to normalise over time.
Clients who are logged in can access the updated model portfolio files and standard text from our downloads page, and will see the full details of the portfolio changes and suggestions for implementation below.
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