Dynamic Planner’s Investment Committee (IC) met on 20 October, focusing on the unprecedented shockwaves suffered by UK assets and currency following the September mini-budget and in particular their impact on the lower risk benchmarks.
In expectation of a return to some form of fiscal normality in the UK, the IC considered the wider global perspective. As central banks play catch-up to quench ingrained inflationary pressures, less globally co-ordinated policy responses appear likely, which could further increase bouts of currency and economic volatility, suggesting that asset allocation decisions on country and currency still matter.
The IC discussed the importance of maintaining bond holdings in the lower risk benchmarks and other options, including the wide range of differing bond maturities modelled within Dynamic Planner.
This comprehensive range of asset classes can be used to assess the risk implications if tactical tilting of portfolios from the long-term benchmark allocations is being considered, given current volatile market conditions.
Read the Investment Committee’s full update.
