EN - Report (page 2) - Flipbook - Page 5
Tactical Asset Allocation
• This table shows how confident we are about markets and asset
classes, with five the most and one the least. Overall, we remain a four.
• In our most recent quarterly tactical review, our conviction on Japan
has fallen (from four to three) and for now, we prefer to take equity risk
in areas such as Europe and the UK. That said, the country has made
great strides in its vaccination effort and recent political upheaval looks
1
2
to be resolved with new prime minister Fumio Kishida in place.
• We continue to see convertibles providing an attractive risk/
return profile as part of our fixed income exposure. Our view has
moved down from four to three, however, as we are taking profits
after a strong spell of performance and feel the asset class has
potentially peaked for this cycle.
3
Cash
UK gilts
Global government bonds
Investment grade corporate bonds
Index-linked bonds
High yield
Emerging market debt
Convertibles
Equity overall
US equity
•
•
•
•
•
•
•
•
•
US small caps
UK equity
UK small caps
European equity
European small caps
Japanese equity
Japanese small caps
•
•
Emerging markets equity
Asian equity
Property
Commodities
Hedge funds
Absolute return
4
5
Direction of travel
•
Overall
•
•
•
•
•
•
•
•
•
•
•
•
Source: Liontrust, November 2021. Not all the asset classes are used in all the MA portfolios and funds
Liontrust Multi-Asset Portfolio Services Quarterly Report: Q4 2021 - 5
