The increase from 31.7% to 35.2% in the second quarter of 2012, will enable the funds to benefit from the higher growth expected in overseas economies, the firm said.
At launch in Q2 2008 exposure to international equities stood at just 26% and two years ago in Q2 2010 it stood at 29%, demonstrating a steady increase.
But increased exposure to international equities has come at the expense of UK equities which saw their allocation drop from 17.8% to 14.5%. At launch in 2008 exposure to UK equities was the same as international equities at 26%, but this had decreased to 21% by Q2 2010 and is now at its lowest allocation.
“We believe that the global economy is undergoing a significant and potentially generational period of rebalancing. The continued march of the emerging markets against what we currently call the ‘developed world’ is not a short term issue with them now representing around a third of the global economy,” said John Ventre, lead portfolio manager for the Skandia Spectrum funds.
“We see this creating significant long-term opportunities for investors. When considering the equity component of their portfolios all investors should broaden their horizons and look to benefit from the faster growing economies in the world.”
The Skandia Spectrum funds are a range of six risk targeted funds that are designed to deliver maximum investment returns for a given level of investment risk. The funds are managed to stay within their stated risk level so that investors can be confident that the funds remain aligned with the risk they are prepared to accept with their investment.
