IG Makes Changes to Smart Portfolios

Electronic trading major IG has recently made changes to the IG Smart Portfolios.

The broker explains that investment returns across the five IG Smart Portfolios have been healthy so far this year as global stock markets have reacted favourably to the welcome progress made on vaccinating large proportions of the population across key developed markets.

While IG recognises that parts of public and private markets appear expensive, it is upbeat on the future prospects for global stocks as the economic recovery goes from strength to strength, with global economic growth expected to be 5.8% in 2021.

In line with this constructive outlook for financial markets, IG recently made changes to the IG Smart Portfolios.

• In the moderate, balanced, growth and aggressive profiles IG reduced exposure to low risk assets such as ultrashort corporate debt and short-dated UK gilts as well as UK inflation-linked gilts.

• IG reinvested proceeds into longer-dated US treasury bonds, high yield corporate bonds and emerging market debt.

• The broker also increased the overall percentage invested in stocks across these four profiles, increasing the amount invested in UK companies in favour of Japanese stocks, given the favourable outlook for continued economic growth due to the UKs successful vaccination programme.

• In the Growth and aggressive profiles, IG took some profit in US stocks by reducing its US exposure slightly and reinvesting proceeds into Emerging Market stocks.

• In the moderate and balanced portfolios, it added to positions in UK, US and Emerging Market stocks.

• In the Conservative profile IG made minor changes, swapping a small amount of holding in UK gilts for Emerging Market bonds as well as switching the exposure to short-term US treasury bonds into the equivalent GBP hedged fund.

An IG Smart Portfolio is an actively managed portfolio that combines management expertise, innovative technology and low costs.

By drawing on BlackRocks asset allocation models IG can provide institutional-quality portfolios that cater to five distinct risk profiles, ranging from conservative to aggressive.