Following a strong performance from bonds this year, the time has come to start reducing the interest rate sensitivity of the bonds we hold in the Active Asset Allocation model. As a result and as noted in our December 2014 Investor Update posted last week, we are making the following changes to the model portfolio:
- Reducing the allocation to 5+ Year EU government bonds from 30% to 20%
- Adding 5% allocation to EU aggregate bonds
- Adding 5% allocation to EU inflation linked bonds
We are also reducing the allocation to absolute return bonds from 30% to 20% and increasing the allocation to gold from 20% to 30% ahead of what we expect will be a strong period for precious metals in the months ahead. Our Active Asset Allocator is now positioned 20% equities / 50% bonds* / 30% gold. (Bonds now include euro government, corporate, inflation linked and absolute return bonds).
To learn more about the full range of investment services available at Secure Investments, please contact Brian by email at email@example.com or at 086 821 5911.