Having joined Standard Life at the end of March, Hambi is working with the group’s asset allocation and multi-asset team on the three fund of fund ranges, collectively known as MyFolio. Each of the three ranges contain five portfolio, aligned as passive, whole of market and fettered strategies.
Hambi, who is responsible for portfolio construction and fund selection, says he has an income bias across all three ranges. High yield is the largest overweight position in the 15 individual funds but he is also favouring corporate bonds, looking to offerings from Aegon and M&G.
“I like yield at the moment, in this environment it’s a nice place to be. There is still a lot of uncertainty in the world with regards to capital growth.”
Within equities Hambi says on a short to medium term view he prefers the US market while he is light on Europe and Asia over concerns of rising rates with the former and increased inflationary pressures in the latter. He feels US equities still offer value and companies there are operating in a supportive environment. Interest rates remain low and Hambi believes authorities will continue to do all they can to keep the US recovery on track.
Neutral on the UK, Hambi feels the economy will “muddle through” and when rates do rise, he doesn’t believe they will do so dramatically. While he does prefer UK equity managers with an income bias, he says he is not loading up on this area.
