It was an unusual quarter for asset class returns, with both higher risk and safe haven assets rallying
Equity markets continued where they left off at the end of the first quarter led higher once more by growth stocks, in particular the technology sector, whilst healthcare companies struggled as Democratic US Presidential candidates took aim at the sector.
Portfolio positioning and market review
During the quarter we rebalanced the models predominantly in the equity space. In the UK we sold out of the Merian UK Alpha fund, consolidating our UK managers down to three with proceeds added to Polar UK Value Opportunities and Trojan Income funds. We also made a change to our specialist healthcare exposure, taking advantage of performance year to date from the Worldwide Healthcare investment trust and switching into the Polar Healthcare Opportunities fund. The fund successfully navigated the sell-off in Q4 last year and we have been monitoring it for some time.
Outlook for the rest of the year and beyond
Despite data pointing towards a slowdown in the global economy, we do not expect a US recession this year or next.
Portfolio Director, Head of DFM Investment Strategy
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.