WM quarterly survey: the big calls from readers for the second half of the year


more than a year after the start of the historic recovery and stocks are still the only ‘game in town’ for investors, UK wealth managers said in our quarterly asset allocation survey.

This observation was made by Paul Stevens, Director of 1st Port Asset Management, but judging by the reported risk exposure, it could have come from almost all of our respondents who were interviewed in early June.

At least half of them said they plan to maintain their overweighting in three of the five equity categories surveyed, while a large majority are underweighting in all bond categories except emerging market debt.

However, not all actions are considered the same. Asset managers seem to have decidedly reversed their view of the United States: more than a third are now underweight the region. That’s about double the proportion of those who had a negative opinion of the country’s stocks in the previous survey in late April.

Justin Oliver, deputy director of investments at Canaccord Genuity Wealth Management, said: “If the growth-to-value rotation persists – which would be suggested by strengthening global activity and steeper yield curves – it will favor markets outside of markets. United States for the first time in a long time. ‘

The managers said they were looking for cheaper options, such as the UK, emerging markets and Japan. The proportion overweighting the UK – 62.5% – is broadly in line with the last quarter, but at 50%, the fraction of optimistic respondents on the last two categories has doubled since the last quarter.

Oliver said the “stock markets outside of the US” were the place to be for at least the next six months. Stevens and JM Finn’s investment manager Brendan Company all noted the UK’s continued potential.

While Rathbones multi-asset manager David Coombs remains positive on the UK, he suggested the biggest gains in the next half-year could be in Europe – long the least popular share class. among our readers.

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