How have we been managing your investments through the recent rises in stock markets?

What’s been happening on markets?

Global stock markets have staged a swift and strong run since the lows hit on 23rd March 2020. At the time of writing the FTSE 100 is up 15.7% and the S&P 500 is up 25.2% since their respective lows. Through this period Casterbridge Wealth portfolios have held an overweight exposure to equities having re-invested cash and/or the proceeds from the sale of fixed income assets around the market lows.

What now?

We believe that it is now prudent to reduce this overweight exposure to equities given the strong run and the growing potential for markets to wobble as institutional investors become focused on the upcoming reporting season. The sale proceeds from reducing equities will be held in cash over the short term, redeployed into markets when we have more economic clarity and favourable market levels are reached. 

Bespoke portfolio activity.

The Bespoke Portfolio Service investment team reduced client’s overweight equity exposure yesterday (22nd April 2020) by between 4% to 7% depending on the portfolio risk level. The team did this by reducing exposure to US Equity markets through the sale of the HSBC S&P 500 Index ETF.

Hardy Managed Portfolio activity.

Likewise, the Hardy Managed Portfolios have this week reduced equity exposure by around 5% to 7% depending on risk level, through the sale of the GAM UK Equity Income fund and a smaller holding in the BMO Emerging Markets fund.

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.

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