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Article | 29 October 2019 | Investments
Japanese equities led the pack, while European equities rose due to expectations for ECB economic stimulus. Returns for UK investors were enhanced by sterling weakness due to Brexit uncertainty, as many large UK companies make most of their sales overseas. US equities advanced after a Treasury official said there are no plans to block Chinese companies from listing on US stock exchanges.
Government bond yields hit record lows in early September, reflecting fears of an economic downturn (bond prices rise when bond yields fall). But this largely reversed as investors focused on Fed and ECB stimulus. Bond market returns were broadly negative, except for some higher risk bonds (reflecting a willingness to take on more risk).
We made no large-scale changes to allocation, but altered exposure to some underlying equity fund holdings, reducing exposure to companies with high-growth characteristics and increasing exposure to companies that look good value on various measures (often referred to as ‘value’ companies). We also reduced exposure to large companies and increased exposure to smaller companies.
Read more about how Nathan Sweeney, Senior Investment Manager, positioned the Architas Multi-Asset Active Fund range last month in a shareable, client-friendly PDF.