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.