SWM sustainable portfolio fact sheets, February 2022: moving to defensive positioning across the board

Whilst our fixed-income portfolio outperformed in February, our multi-asset portfolios and equity portfolio lagged the benchmark. This was due to a combination of weakness in ESG ETFs (these often have a high proportion of small- and mid-cap stocks) and weakness in European equities. Our long-term track-record of strong outperformance remains intact. We have made a significant strategic change to all our portfolios: we have moved a fully defensive positioning for the first time since the Euro crisis in 2011.

This is driven by our technical indicators, which as we have previously flagged started flashing amber last summer, and have since given multiple confirmations that the long-running equity bull market is rolling over into a bear market (all of this prior to the Ukraine conflict starting). Key changes include: underweight in equities, bonds and property; cash buffer of 20%+ in all portfolios, overweight in precious metals. We believe 2022 will be a challenging year for most public-market asset classes, and would recommend focusing on blockchain-related private market opportunities (see our sister-company www.blufol.io).

Please follow this link to read Secure Wealth Management’s monthly ETF portfolio review for February 2022.