Waverton Investment Management multi-asset analyst Paris Jordan reveals an unlikely fund that has delivered a 40% return this year and why she’ll be even closer to her folks this Christmas
What have been your top and worst-performing fund picks during the year?
The funds that we select are to complement the direct holdings in our MPS thus they need to be additive from an opportunity and diversification perspective. With this in mind we select funds that are somewhat esoteric and this year, our Indian exposure in Ashoka India Opportunities has been stellar. It has delivered 39.44% in absolute terms and delivered over 14% of outperformance vs. the MSCI India index. Conversely, our long standing holding in Baillie Gifford Global Discovery, that we retain long-term conviction in, has struggled this year after experiencing an astronomical reversal in 2021 vs 2020.
How do you expect the Santa rally to play out this year?
The market environment is full of risks this year from Covid through to potential inflation, and we’ve already witnessed a number of investors take risk off of the table before year end. Investors appear to be very heightened to the downside risk, but with that said, should the wider consensus be that Omicron isn’t a concern we may see investor confidence resume and the Santa rally fly in for year end.
What are your biggest over and underweights heading into 2022?
We maintain that fixed income, while a very useful asset class, remains fundamentally challenged going forward. With rate hikes on the horizon, inflation numbers beating estimates and bond spreads compressed, our underweight to the asset class seems sensible. As strong long-term proponents to the thesis that the 60:40 portfolio is challenged, we continue to be overweight to alternatives. Our overweight includes sub-classes such as real estate, infrastructure, absolute returns, currency, hedging and commodities. We foresee these portfolio characteristics as supportive in challenging markets, inflationary environments and in risk-on markets.
How have in-person meetings changed compared to pre-pandemic times?
In-person meeting definitely have more of an exciting feel to them and the first few I did felt like a new experience. However, in terms of content, managers are still providing the information needed and thoughtful answers. They just may not be wearing a tie anymore!
Are you going to have an office Christmas party this year? If so, what is the plan?
We are having a Christmas party, which is optional to join should staff feel comfortable. Clearly, Covid testing will need to happen both before and after but for those of us who are Covid free and comfortable we are having a lovely black tie event in Marylebone. I think we all deserve a night to celebrate our achievements after the past 20 months.
How different are your Christmas plans going to be in 2021 compared to last year?
For me, very different. I’ve recently sold my property and had to move home with my folks until my new purchase completes. This year I’ll be very close to my family, which does have its drawbacks…albeit there definitely are some perks to moving home after 13 years.
What’s on your Christmas wish list?
My new house purchase to sail through!
