Supposed low-risk portfolios could soon be revealed as not-so risk free as troubles in global markets begin to bubble over, the Leeds-based private wealth manager said.
In the firm’s December outlook, it points to a “fictional” Chinese growth rate, an Italian banking system on its knees and hyped up employment figures in the US as reasons for investors to be wary.
Mark Smith, partner at Andrews Gwynne, said the firm is increasingly locking in profits as cash holdings.
He said: “We are just a bit bemused by markets continually being propped up. We are aware that a lot of the financial advisers’ portfolios or low-risk portfolios will be found to be not low risk at all.”
They are, for now, having to be patient and weather the storm, Smith added: “Where we have been selling assets we have not been reinvesting the proceeds, we have been holding it as cash. We added the Jupiter Absolute Return fund to our portfolio.
“We have been investing into absolute funds for nearly ten years, some have been successful, some not so successful. This one has shown to provide good out performance.”
