Despite another good three months for cyclical assets, we are sticking with them within our Model Asset Allocation. We make minimal changes, with a reduction in the allocation to highyield credit (to Underweight) and a corresponding increase to equities (going further Overweight). Real Estate and equities remain our favoured cyclical assets, while cash is our diversifier of choice. We boost allocations to emerging market (EM), Japanese and UK assets, with an overall preference for UK and EM assets.
In our view:
Our best-in-class assets (based on 12m projected returns)
Nageen Javaid, Invesco Associate Client Portfolio Manager, discusses the role of bonds in the transition. As achieving net zero carbon emissions by 2050 has become a central goal for governments, corporations, and environmental advocates worldwide.
In our monthly market roundup for January, Invesco experts provide an overview of a strong month for global equities and offer an update on the fixed income markets.
In our regularly updated macroeconomic analysis we offer an outlook for interest rates and currencies – and look at which fixed income assets are favoured across a range of market environments.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Data as of 31 May 2021 unless stated otherwise.
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Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.
