UK portfolio trends and opportunities for 2021

Janus Henderson’s Portfolio Construction and Strategy Team (PCS) performs customised analyses on investment portfolios, providing differentiated, data-driven diagnostics. From a diverse universe of thousands of model portfolios emerge trends, themes and potential opportunities in portfolio construction. In the following update, Adam Hetts, Global Head of Portfolio Construction and Strategy, and Sabrina Geppert, Senior Portfolio Strategist, examine portfolio trends and opportunities for UK investors in 2021.

Key takeaways:

• UK equity home bias can arguably work against an investor’s long-term portfolio goals.
• Global strategies are popular as a balancing mechanism but the allocation to the UK market in global equities can often be significant.
• The advantages to using multi-asset allocation strategies within a portfolio – diversification, outsourcing timing decisions – should be balanced against the potential addition of unintended risk to the portfolio.
• Arguably, there has been too much focus on finding a single fixed-income solution, when the best solution is probably that it is a mix – and that mix depends on an investor’s goals.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

The information in this article does not qualify as an investment recommendation.

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