Portfolio Builder
Chock full of promise
While the global economic situation continues to cool
and follow a definite direction, fund pickers are now able
to look at micro and country-specific factors for their
stock selection. At the same time, those building client
portfolios are able to look at a wider choice of funds and
asset classes and include a greater variety of derivativebased
propositions.
That said, fund managers are still largely nervous, as
the Manager Sentiment survey shows on pages 36 and
37. For example, fund flows are moving out of corporate
bonds yet their 12-month outlook is still hugely positive.
They cannot both be right…
■ The IMA Sterling Corporate Bond sector has
outperformed the Corporate Bond sector so far this
year (5.35% compared with 4.89%) and over the past
year (31.29% and 26.93% respectively).
■ They have both outshone the MSCI World Equity Index
so far this year (2.74%) while languishing behind it
over the past year (19.09%).
■ The UK does not fare well according to the IMA, with
UK Equity and Bond Income, Smaller Companies and
All Companies ranked just above Corporate Bonds, the
worst selling sector in February.
Source: Investment Management Association, Fund Research Centre on www.portfolio-adviser.com
In this section…
Fund selector
ASIA EX JAPAN
EQUITY 39-41
“While it is arguable that
smaller funds can be
more nimble, the stockpicking
abilities of the
larger managers more than
compensate” FundQuest’s Paul
Kim explains what has influenced
the biggest, best and newest Asia
Pacific ex Japan funds to explain
their relative performance
Manager sentiment survey
MARKET OUTLOOK 36-37
“[In the UK] it will be
fascinating to watch the
direction both sentiment and
the benchmark indices head
in the months either side of
the election result” The manager
sentiment survey echoes popular
opinion with their feelings over
most sectors plateauing or falling
during March
Asset allocator
ARMSTRONG
INVESTMENT MANAGERS
42-43
“We are not in any asset
class unless we expect
a return from it and all the
positions are designed to
create a portfolio with defined
risk characteristics” Patrick and
Ana Cukic Armstrong have plenty
of in-house experience of running
multi-asset portfolios and here
they explain how they run their
own business
MAY 2010 [www.portfolio-adviser.com] PORTFOLIO ADVISER
35
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