Model Portfolio Service: Q4 2019 update

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.  


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.

This article is issued by Cazenove Capital which is part of the Schroder Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Contact Cazenove Capital

To discuss your DFM requirements, or to find out more about our services and how we can help you, please contact:

Nick Georgiadis

Nick Georgiadis

Head of DFM Team
Simon Cooper

Simon Cooper

Business Development Director