Hardy Managed Portfolios: Portfolio Activity Update

In their latest rebalance Julian Menges and the team have made a number of changes to the underlying funds held across the Hardy Managed Portfolio range. Here Julian takes a closer looks at the economic environment and describes the rationale behind the changes…

Investors are still mulling over the progression of the coronavirus, the impact it has had on the global economy and the likely speed of economic recovery. There are hopeful signs: leading indicators suggest that the second quarter may not have been as bad as initially feared; virus cases continue to decline in Europe and remain subdued in Asia; and health systems are becoming more proficient at treating the virus.

However, there are reasons to remain cautious. In regions that have got on top of the virus, day-to-day life is by no means back to normal. The levels of debt and psychological scarring that this crisis will leave on the global economy is likely to be material. We also have the US Presidential Election just a few months away, and this is likely to be one of the most fiercely fought and controversial in many decades.

Turning to the economy, and equities in particular, the pandemic is likely to result in two key outcomes: the acceleration in the use of technology, and market-leading companies emerging with their competitive positions intact and even strengthened. As a result, we have made a number of changes to the Hardy Managed Portfolios to benefit from this changing market environment, including the intro introduction of three sustainable equity funds for the first time.

Portfolio activity:

Equities:
UK: added RLAM Sustainable Leaders
Asia: added Stewart Investors Asia Pacific Sustainability
Infrastructure: added Foresight Global Infrastructure (we believe it’s currently not appropriate to invest in physical property funds due to liquidity concerns)
US: added T Rowe US Large Cap
Europe: added Man GLG Continental Europe

Bonds and Alternatives:
Bonds: we are reducing our exposure to long-only corporate bonds as we believe they are becoming increasingly volatile and correlated to equities, and so no longer providing the diversification that investors need. Instead we are introducing US Treasury bonds as these are better placed to provide upside in the event of a further economic slowdown.
Gold: this has been a very successful investment since its introduction last year and we are increasing exposure to add further “insurance” for portfolios.

For more information on the above changes or anything else Casterbridge related please don’t hesitate to contact one of the team Contact Us

You can get much more information on the Hardy Managed Portfolio range here and all the latest factsheets here

Important Information

This update is for information only and does not constitute advice or a recommendation and you should not make any investment decisions on the basis of it. The views and opinions within this document are those of Casterbridge Wealth at time of writing and may change without notice. They should not be viewed as indicating any guarantee of return from an investment managed by Casterbridge Wealth nor as advice of any nature. Past performance is not a guide to the future. The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.