We triggered our latest Tactical Asset Change (TAC) in early March, marking our first major manoeuvre since September. Having remained patient through the winter, we moved as Middle East tensions escalated, and the market complacency signalled a need to trim risk. This transition allowed us to bank some profits from the recent “broadening out” trade and reallocate capital into areas where valuations and diversification benefits remain more attractive.
The main changes involved rotating technology and emerging market exposure into strategies with more compelling relative valuations. We increased our allocation to gold and silver equities which remain attractive from a valuation perspective and for their diversifying benefits. We rotated out of our dedicated US Treasuries fund, into two active fixed income funds to take advantage of bond market volatility, reduce US Dollar currency risk and protect against higher inflation. We also introduced two new market neutral strategies to further strengthen our alternatives bucket. These refinements ensure portfolios remain resilient and well-positioned to navigate elevated valuations, inflation uncertainty, and continued geopolitical tensions.
Important Information
This video is for information only and does not constitute advice or recommendation and you should not make any investment decisions based on it. The views and opinions of this video are those of Casterbridge at the time of recording and may change without notice. Any opinions should not be viewed as indicating any guarantee of return from investments managed by Casterbridge nor as advice of any nature. It is important to remember that past performance and 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.