Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Multi-managers continue to snub bonds

Multi-managers continue to snub bonds

During the third quarter of 2017, bonds continued to receive the cold shoulder from both multi-manager funds and model portfolios.

Across the £5.5 billion assets under management (AUM) balanced models and multi-manager sector, allocations to bonds fell by 0.74 percentage points to 23.45%, a three-year low, as more and more managers are beginning to lose faith in the traditional 60/40 model.

According to research by Harrington Cooper, covering 32 multi-manager funds and model portfolios, exposure to investment grade dropped by 0.51 percentage points to 11.18%, while investor sentiment gilts shifted slightly with allocations up 0.14 percentage points to 1.94%.

 

 

On the other side of the spectrum, equity allocations rose by 0.84% to an average of 52.7% in balanced models over the three-month period. However, this is still down significantly from the average of 59.8% during the highs of Q4 2014 from the tail end of quantitative easing (QE).

 

 

During the quarter ahead of the Japanese election, which saw a landslide victory for incumbent Shinzo Abe, exposure to Japanese equities rose by 0.55% to 4.82%.

Meanwhile, UK equities held steady around 14.87% and global emerging markets fell in popularity, down 0.51% to 2.79%.

 

Managers holding cash across balanced models climbed by 1.1% to 5.96%. This compares to an average cash pile of 5.96% across income models.

Alternatives also proved popular with an average allocation of 14.02%, and 7.06% across income models.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Citywire 20: Investec's du Toit on managing the 'jerk factor'

Citywire 20: Investec's du Toit on managing the 'jerk factor'

Investec boss Hendrik du Toit believes he has become far more decisive over the last 20 years, especially when it comes to managing 'jerk' factor.

Play Citywire 20: Hugh Young's bleak lesson

Citywire 20: Hugh Young's bleak lesson

In the latest video to mark Citywire's 20th birthday, Aberdeen Standard Investments Asia head reminisces about one of the toughest periods in his career.

Play IWD 2019 video: fund and wealth figures define diversity

IWD 2019 video: fund and wealth figures define diversity

To mark International Women's Day, we have spoken to a variety of top fund houses and wealth managers about their definition of diversity, and how they hope to achieve a more inclusive workplace.

Read More
Wealth Manager on Twitter