Aberdeen raises cash holding across range
The Aberdeen multi-manager team has increased its cash weighting across its £9bn range to up to 10 per cent in response to market volatility.
Aberdeen had a 6 per cent cash weightings before the summer sell-off.
Asset management senior portfolio manager Scott Spencer says: “Cash was reduced to 1 or 2 per cent when the FTSE hit lows at 4,900. Since then, we have taken out the money we put in and the bulk of cash has been raised by further reducing Europe. Until there is a broad consensus on how problems are going to be solved in Europe and the US, we are happy to hold that cash.”
Bestinvest senior analyst Ben Seager-Scott says: “The biggest issue that we have at the moment is political uncertainty. Politicians follow political cycles, they do not always do what is best for the economy. That is the kind of uncertainty that markets dislike the most.”