At Juniper Wealth Management, our focus is always on optimizing your portfolio to reflect the best investment opportunities while managing risk effectively. As part of our ongoing enhancements, we’ve focused on three key areas: Fixed Income, Infrastructure, and Small-Cap Investing. These improvements will enable us to capitalize on market opportunities while staying aligned with your long-term financial goals.
1. Fixed Income: Moving Beyond Short Duration Bonds
Previously, due to the zero interest rate policy (ZIRP) of central banks, we adopted a short-duration bond strategy to minimize the upward risk in bond prices. However, with interest rates now fluctuating and global central banks adjusting their policies, our new approach allows for more flexibility. Utilizing Dimensional’s methodology, we are better positioned to adjust bond duration dynamically while remaining diligent and conservative in managing risk. By incorporating a wider spectrum of bonds, we can capture higher yields without exposing you to unnecessary volatility.
Why This Shift Matters:
This new strategy gives us the ability to navigate more complex market conditions, improving returns when interest rates rise, while still protecting your investments against downside risks(the-evolution-of-dimens…).
2. Infrastructure: A Vital Asset Class for the Economic Cycle
Incorporating infrastructure assets into your portfolio offers long-term stability and inflation protection. As economies recover and adjust to shifting monetary policies, infrastructure—such as utilities, transportation, and renewable energy—delivers steady cash flows and low correlation with traditional equities. This makes it an ideal asset class to buffer portfolios during periods of volatility.
Why It’s Important Now:
Infrastructure assets are particularly relevant in this part of the economic cycle. As global growth stabilizes, investments in infrastructure offer inflation-linked returns and predictable income streams, making them an excellent addition to your portfolio.
3. Small Caps: Expanding Beyond the Giants
While maintaining continued exposure to large-cap giants like Apple, Google, and Microsoft, we’ve deepened our investment focus on small-cap companies across the globe. These companies meet fundamental investment criteria like strong profitability and value, which have historically led to outperformance. By increasing exposure to firms with market capitalizations as low as £50 million, we can target high-growth opportunities that complement our existing holdings in larger firms.
Why This Matters:
Small-cap investing allows us to broaden your portfolio’s potential for growth, capturing opportunities in undervalued and profitable firms that larger companies might miss. This added diversification helps balance the concentration risk of mega-cap technology stocks, providing more robust long-term growth(the-evolution-of-dimens…).
Conclusion:
With these three key enhancements—flexible bond duration management, expanded infrastructure exposure, and a deeper dive into small-cap opportunities—we’re confident your portfolio is positioned to perform strongly across various market conditions, while continuing to align with your risk tolerance and financial objectives.
Interested in learning how these changes impact your portfolio? Reach out to discuss your personal investment strategy.
