Equity markets pushed higher across the board, led by the tech and healthcare sectors

Ahead of the general election we tactically added to our mid cap exposure via a FTSE250 index tracker.

Portfolio positioning and market review

We rebalanced the models in November. The focus here was to add back into the UK, in particular domestic mid-caps via the FTSE250 tracker. The rationale being that once the General Election had been called, we felt the probability of a no deal Brexit had reduced and would benefit companies that derive most of their earnings here in the UK. We funded this by selling the L&G Global Equity tracker as well as trimming our weighting to Japan.  

Outlook

We are happy to remain neutral on equities. Whilst positive towards valuations which do not look extreme, we are conscious of the rerating seen during 2019. As an asset class we think bonds look overvalued and we are therefore selective in what we own and positioned underweight. Risks remain, including the upcoming US election and geopolitics in general, so we continue to be positive on alternatives such as targeted absolute return, structured products and gold to act as portfolio diversifiers.