Adopting a more global investment approach
One of the most important decisions made last summer by our Investment Committee was to have a more global approach as opposed to a UK centric approach.
Tactically we have been positive on the US Dollar too and have placed a large percentage of risk assets into US equities and other US Dollar denominated equities, such as Asia and Emerging Markets.
Across our different portfolios, we have had a strategic allocation to US equities ranging from 8% to 16%. Tactically these allocations have been higher.
We expected the US Dollar to rally against Sterling from the level when we took this more global stance (£/$1.68) towards £/$1.55. This 8% change has occurred and we have reduced our US Dollar weighting and may do so further, particularly if £/$ drops below £/$1.55.
By holding lower risk assets, such as cash and Gilts, in Sterling as part of a risk reduction strategy, within a balanced portfolio this completes the picture.
