Liontrust Multi-Asset Quarter in Review - Flipbook - Page 5
Tactical Asset Allocation
• This table shows how confident we are about markets and asset
classes, with five the most and one the least. We have moved
our overall target Tactical Asset Allocation (TAA) score down
from four to three but would say we are actually more at 3.5,
reflecting the fact navigating higher inflation and slowing growth
calls for slightly more defensive positioning.
• In our most recent review, our ranking for European equities and
European smaller companies has also fallen from four to three.
• We stress this remains a positive score but Europe is the region
most at risk from the war in Ukraine, with all the geopolitical
fallout and sanctions that may bring.
• We feel risks to the downside are more prevalent than in
previous quarters, so the lower ranking is warranted.
1
2
3
5
Direction of travel
•
Overall
Cash
•
UK gilts
•
Global government bonds
•
Investment grade corporate bonds
•
Index-linked bonds
•
High yield
•
Emerging market debt
•
Convertibles
•
•
Equity overall
US equity
•
US small caps
•
•
UK equity
•
UK small caps
European equity
•
European small caps
•
Japanese equity
•
Japanese small caps
•
•
Emerging markets equity
•
Asian equity
Property
4
•
Commodities
•
Hedge funds
•
Absolute return
•
Source: Liontrust, 11 May 2022. Not all the asset classes are used in all the MA portfolios and funds
Liontrust Multi-Asset Funds and Portfolios Quarterly Report: Q2 2022 - 5