We’re bullish on energy

Genevieve Signoret

(Hay una versión en español de este artículo aquí.)

We update you on our portfolio strategies.

First, three quick reminders:

1. Our client portfolios hold long positions only and composed chiefly of exchange traded funds (ETFs), most of them index funds, although for certain clients in certain circumstances we also buy individual sovereign bonds.
2. Percentage allocations vary across clients, and depend on each client’s objectives, risk tolerance, and investment horizons.
3. You can read an overview of our approach to building our client portfolios in a three-part series on this blog. Click here to read how we allocate the equity portion, here for fixed income, and here for liquid alternative assets.

Equity

In equity, we’re overweight global and U.S. energy stocks and U.S. telecommunication services.

Fixed income

In fixed income these days, our client portfolios hold non-U.S. developed market sovereign bonds the average duration of which is 8.5 years, U.S. Treasury notes maturing in the next 7–10 years, and U.S. inflation-protected Treasury securities (TIPS).

Liquid alternatives

In liquid alternatives, our client portfolios hold exposures to global commodities, U.S. and global real property, and global energy infrastructure.

Is there an overall theme anywhere here?

There certainly is. We’re bullish on energy!