Reduction of Equity Component to Strategic Target Level

In mixed portfolios, we have reduced the equity allocation. The Gutmann bond strategy now has a higher weighting.

In the past two years, Gutmann Asset Management has kept the weighting of equities in your investment overweight relative to bonds. Since January of the current year, dividend stocks have also been comparatively prominent within the equity investments with a share of 20 percent.

The focus on equity investments has proven to be a good choice in view of the positive performance. The price evolution to date led to notably higher valuations, particularly in the dominant US market.  On Wall Street, there has been a clear concentration on a small number of stocks. Wall Street has experienced a clear concentration in a small number of stocks, especially in the technology sector. While this has fueled the performance of US stock indices, it has simultaneously increased future risk. 

Now that equities outperformed our expectations, we have decided to take some of the profits. This is the case with dividend stocks, for example. In the Gutman Core Equities strategy, we employ equal-weighting for securities, thus deliberately avoiding concentration risks. This is also the reason for increasing this strategy’s proportion.

The changes to the equity structure in detail:

• Gutmann Core Equities: 69% (plus 6%-points)
• Gutmann Global Dividends: 15% (minus 5%-points)
• Equities Japan: 12% (unchanged)
• Pure Innovation Strategy: 4% (minus 1%-oints)

Equity weighting remains positive

Overall, Gutmann Portfolio Management’s equity weighting remains positive. Only an underweight position would signal a negative outlook. The current allocations now align with individual strategic target levels. 
Conclusion: A lot has happened in the past two years. Our strategic decisions reflect the changing market conditions. 
For any questions or to discuss your individual investments, please contact your relationship manager.