Equity Valuations – Q4 Investment Update

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  • October 10, 2019

Little has changed from a valuation perspective when compared to the last rebalance point at the beginning of July. Although, equities remain a little more expensive than they were in April following the rally from the start of the year. The biggest relative movers were UK, small caps and Asia ex Japan, reflecting the challenges impacting these particular areas.

The UK market is now at the most significant discount to global equities that we have seen over the last several years. Ongoing disruption in domestic politics mean that investors continue to shun the asset class and the pound.

Overall, while equities do not appear cheap, they are certainly not expensive when compared to their own history or other asset classes. This is most prominent when comparing equities against fixed income, which has become significantly more expensive over the quarter. This underlines our continuing overweight to equities.


Posted By Will Dickson

Chief Investment Officer Will Dickson is a Chartered Wealth Manager as part of the Chartered Institute of Securities and Investment (CISI) qualification scheme. This recognition was obtained following an MSc in Finance and Investment from the University of Exeter, and an Accounting and Finance BSc from the University of Bath. Will’s exceptional talent is recognised by CityWire’s Wealth Manager, having been named as one of the UK’s Top 30 investment managers under the age of thirty for the last three years. Will manages and oversees P1’s range of investment portfolios. Working with the Investment Team, Will shapes the investment policy and fund selection for our Passive, Hybrid and Ethical and Sustainable portfolios. In conjunction with managing the fund portfolios, he oversees and our AIM Inheritance Tax and Tier 1 Investment Visa equity portfolios. Will has joint written articles with P1’s Head of Research, Dr Rayer. Their article “Hypothesis: Risk, like Mass and Energy, can neither be created nor destroyed” featured in the CISI’s The Review of Financial Markets. In addition to contributing to articles with Dr Rayer, Will often delivers P1 CISI Endorsed lectures to Independent Financial Advisers. You can see Will’s take on weekly investment news here.