How have our clients responded to recent volatility?

CIO MONTHLY | MAY 2019

How have high and ultra-high-net-worth, family office and not-for-profit clients managed their portfolios through the recent market volatility? How are they positioning themselves for the period ahead?


Over the past six months, despite volatility in global markets, our clients have continued to increase their allocations to international equities. The long-standing  'home bias' is being reduced. On average, international equity positions now exceed domestic equity positions, in line with our recent strategic and tactical decisions.

Client portfolios have also embraced our strong strategic and tactical commitment to alternative assets, which have increased by more than 50% over the past year from 6% to 10% of funds under advice.

Globally, industrial activity, trade and consumer spending has improved across the US, Europe, the UK and China. While we do not advocate an absolute 'risk-on' stance, we are more confident that investors should stay engaged.

Recent developments increase our confidence that cash is unlikely to be the asset class of choice in 2019. A longer-than-expected period of steady growth, inflation and interest rates argues strongly for continuing to implement portfolios in a strategic manner in the wake of liquidity events.

 

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