The changes during the third quarter continue with the theme of ensuring adequate diversification relative to remit, this diversification remains fit for purpose, and adequate levels of liquidity. As highlighted in the column ‘The ending of an era’ (23 September 2022), while recognising pockets of value are now appearing in the investment trust sector after its recent and significant de-rating, the omens suggest market volatility will continue given the various challenges ahead and the continued rise in global interest rates. However, as usual, this volatility is providing opportunities to further pursue the portfolios’ various remits.
The context
As regular readers know, the Growth and Income portfolios are real portfolios called Summer and Autumn on the website www.johnbaronportfolios.co.uk, where they form part of a five-portfolio risk-adjusted investment journey. The terminology of the ‘seasonal’ portfolios (the LISA portfolio was introduced afterwards) reflects progress along the investment journey, and each therefore conveys the stage of that journey rather than the age of the investor! The choice of assets and pace of diversification is highlighted on the website’s open Rationale and Diversification pages.