COVID-19 – An update From Ermin Fosse

Our model portfolio changes - July 2020

Below is a summary of the recent changes made to our model portfolios, managed by Alpha Portfolio Management.

Our model portfolio changes - July 2020
Ermin Fosse

Ermin Fosse

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Our fund factsheets provide the key information about our portfolios and are updated on a quarterly basis.

Commentary provided by Alpha Portfolio Management:

Having reviewed the portfolios following the exceptional market volatility earlier in the year, whilst acknowledging the extreme uncertainty faced by markets, we were disappointed by the capital preservation qualities of some fixed interest holdings. 

A combination of more rational investment behaviour, alongside substantial Government and central bank stimulus, has given us an opportunity to re-position fixed interest exposure, which should ensure this part of the portfolio is more robust, if fears of a second wave of coronavirus come to pass.

We also took the opportunity to remove a number of underperforming funds, where we have lost confidence in their strategy, particularly where fund management changes have been announced.

Defensive, Cautious, Balanced 

We established a holding in Vanguard Global Bond (£ Hedged), reducing positions in Jupiter Strategic Bond, Fidelity Strategic Bond, Baillie Gifford Investment Grade Bond and Vanguard UK Government Bond. Invesco UK Strategic Income and Invesco Global Targeted Returns were sold, due to ongoing underperformance.

Balanced Growth 

A holding in Vanguard Global Bond (£ Hedged) was established, reducing positions in Jupiter Strategic Bond and Vanguard UK Government Bond, as well as selling Baillie Gifford Investment Grade Bond. Announcements of fund manager changes at Marlborough Special Situations and Schroder European Alpha Income prompted us to sell the holdings. Exposure to Emerging Markets was reduced considering the particularly acute challenges faced by the region with the ongoing spread of covid-19. This was achieved by selling underperforming Somerset Emerging Markets Dividend.

Moderately Adventurous

We established a holding in Vanguard Global Bond (£ Hedged), selling Jupiter Strategic Bond after a strong run. Announcements of fund manager changes at Marlborough Special Situations and Schroder European Alpha Income prompted us to sell the holdings. Exposure to Emerging Markets was reduced considering the particularly acute challenges faced by the region with the ongoing spread of covid-19. This was achieved by selling underperforming Somerset Emerging Markets Dividend.

Adventurous

Exposure to Emerging Markets was reduced considering the particularly acute challenges faced by the region with the ongoing spread of covid-19. This was achieved by selling underperforming Somerset Emerging Markets Dividend. Marlborough Special Situations and Schroder European Alpha Income were also sold following announcements of fund manager changes. 

To discuss your investment portfolio or financial planning needs, contact us.

This article is distributed for information purposes and should not be considered investment advice or an offer of any security for sale. This article contains the opinions of the author but not necessarily Ermin Fosse and does not represent a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. It is not a promotion of Ermin Fosse’s services.

Please contact us before you invest / disinvest. The past is not indicative of future results. When you invest you may not get back what you put in. Errors and omissions excepted.

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