This offers 5 risk-rated and 2 dedicated income portfolios for different levels of risk, which are currently available on five platforms.
Since launch, we would like to highlight the following on the performance of the Luna Passive MPS;
Source: MorningStar Direct and Luna Investment Management
So why has performance been so strong?
Markets were at depressed levels a year ago, when the MPS was launched, because of the impact the pandemic had on global markets. The recovery from these lows has been a significant factor in all portfolios delivering positive returns over their first year.
However, the drivers to performance have changed dramatically over the last year. In the first six months, the key drivers were the areas that enabled us to adapt to a lockdown environment – Technology. This was also driving regional performance with the US tech-heavy market being a strong performer in 2020.
As the vaccine news was released, the stock market rotated. Investors realised that the winners of 2020 were not likely to be the winners of 2021 as economies gradually reopened. On top of this, the areas that have bounced back hardest over the last 6 months started at extremely cheap valuations.
We picked up on this price action very early and took profits on our US and Technology positions to reinvest into more cyclical areas that we felt would perform well as economies reopen. This has been one of the key drivers to returns since the launch of the MPS and when looking at the six-month performance all Passive MPS are comfortably ahead of their respective IA sectors.
The best-performing holdings over the last 6 months are;
We continue to be optimistic about the economic and investment outlook. We view the global economy like a “coiled spring”, with the expectation that the easing of restrictions could lead it to burst into life. As and when this happens, it will likely lead to a boom in economic growth. We have longed to see friends and family, we have longed to travel, the roadmap has been set out and is currently on track.
We also remain confident with the current positioning of the MPS that will be the key driver to returns going forward. We are overweight equities, with a bias to the UK, and underweight fixed income – which we feel is appropriate given our positive view on the global economy.
The content in this publication is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.