Investors have grappled with the question of currency allocation this year, triggered by the sharp depreciation of the dollar against most major currencies. While a sharp currency move is understandably a source of concern, we think it is important for investors to think about the various underlying questions before considering portfolio reallocations to reflect views on particular currencies. 

In early March, we wrote a note highlighting the uncertainties and complexities arising from the Trump Administration’s trade policy intentions. Based on our analysis we increased our overweight to fixed income by reducing equities.

Since we established Parkview in 2011, we have often debated whether we should include gold in our standard asset allocation. We have not done so. I have always taken the view that because gold is an asset that does not generate a return, it is not possible to value it with any degree of consistency. Nonetheless, we recognise that gold has a special place in the imagination of some investors. For investors who have a very strong conviction for such an allocation, we have accommodated their requests.