Bambos Hambi manager of the MyFolio range at Standard Life Investments is “cautiously optimistic” on the prospects for stock markets, apart from the UK, which is his only equity underweight.
The SLI mutli-manager range was overweight UK equity for the first four years of its existence, before going neutral in 2015 and, finally, underweight in the beginning of 2016.
While he wouldn’t call the UK irrelevant for today’s investors who are looking to generate smooth returns for clients, there are “better opportunities in overseas markets,” he admitted.
F&C multi-manager Burdett is also underweight UK currently.
“Sterling has already been as low as it is now months ago so you would think that it should have attracted more foreign buyers,” Burdett said.
Interestingly, post-election many wealth managers and multi-asset groups were expressing a preference for global thematic investment strategies.
Coutts’ Alan Higgins, explained that his firm’s strategy was more global and sector specific these days, targeting areas like healthcare, financials and tech.
John Husselbee head of multi-asset at LionTrust stressed that his portfolios were “globally diversified and focused on risk first.”
“We are living in a global world so to say the UK is the driver to our portfolio would be wrong.”
The UK represents less than 10% of the world by GDP and market cap, said Husselbee, so by focusing on just that 10% slice, you are ignoring 90% of the opportunities.
Michel Perera CIO at Canaccord Genuity Wealth Management also agreed that pursuing a global, thematic route was the way to go and is currently eyeing up opportunities in infrastructure, healthcare, India and European banks.
