Portfolio Update: Favoring dividend paying stocks

On a regular basis, we keep our clients updated through email by publishing Market Update, Portfolio Update and FX Update. Here you can read the latest Portfolio Update:

On 10 May, JGAM held its monthly Investment Committee meeting. We decided to reallocate from commodity currencies into dividend paying stocks, leaving us with an underweight allocation on the asset class Fixed Income and moving more into an overweight allocation on Equities. Also, on leveraged portfolios we have changed into a 100% euro funding.

The eurozone crisis has reemerged and therefore, we have decided to protect our investments somewhat by investing in large companies with solid balance sheets and minimal exposure to Europe and the euro. Some of these companies are as solid as bonds, except they pay a better dividend yield.

Please, read the Asset Allocation Strategy report on JGAM’s website in order to get more information on how we assess the present investment environment and why we have made the changes to the portfolios.

Should you have any questions, comments or if you wish to discuss or place an order, please contact your Relationship Manager directly.