Portfolio Builder
In this section…
Manager sentiment survey
MARKET OUTLOOK 26-27
“After six months of a neutral
stance on the US, investors
have shifted gear and now
give the sector the thumbs
up” Investors are returning to risk
assets with equity sectors enjoying
a continued recovery – Japan
being the notable exception – with
the US and Europe making a
comeback
Asset allocator
JOHN REDWOOD 32-33
“It is difficult enough to make
a sensible judgement about
whether shares are worth
holding or not and we think it’s
dangerous to be so confident
on your judgement that you do
it on borrowed money as well
as through geared options”
Evercore Pan-Asset’s John
Redwood talks Gary Shepherd
through his firm’s simple asset
allocation strategy that avoids
complexity, leverage and active
management
Fund selector
PROPERTY FUNDS 29-31
“The top-ranked property
funds over three years fall
into two distinct groups, those
where the returns are largely
uncorrelated to the global
economy and those in Asia”
Property is making a comeback to
investor’s ‘watch’ lists, so OPM’s
Tony Yousefian here analyses
some of the current property funds
on offer
What the future may hold
To describe the 2000s as ‘disappointing’ for investors is a
mild understatement. They are looking to the new decade
with a greater sense of curiousity, a degree of foreboding
and nervousness as well as excitement as surely the only
way is up for their portfolios?
Some of the old favourites are staking a claim to a
return to portfolios, with property heading the queue,
although investors will this time round demand and expect
liquidity; they are also likely to only go with those houses
with proven property expertise so Henderson, Schroders,
Threadneedle and others are already cranking up their
marketing activity.
The credit crunch may have been founded on property
concerns but it is amazing how short some people’s
memories are.
■ The over-riding mood going into 2010 is one of
uncertainty surrounding macro calls such as inflation,
the cost of UK and other government debt and what the
unravelling of QE will mean for investors.
■ If there is any certainty, it is that interest rates are
likely to stay low for the foreseeable future, as will gilt
returns.
■ Investors wanting a return on their investment are
going to have to take a risk in their portfolio and look at
real or more risky asset classes.
24 PORTFOLIO ADVISER [www.portfolio-adviser.com] JANUARY 2010
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