Multi-managers target Asia

Multi-managers Architas and OPM Fund Management are looking to Asia for growth on the back of the poor economic outlook for the developed world.

Architas runs six multimanager funds, including the £39.1m reserve fund, £86.3m multi-manager cautious income fund, £68.2m multi-manager income fund, £112.8m multi-manager balanced fund, £39.9m multi-manager dynamic fund and £71.7m multi-manager growth fund.

Architas chief investment officer Caspar Rock says: “We have been allocating to emerging markets, away from developed markets across the multi-manager funds.”

Rock says the funds have moved back to a neutral position in developed markets equities relative to emerging markets equities since the beginning of the year.

He says: “We are seeing Moody’s upgrade emerging markets such as Brazil, in contrast to the relative credit ratings of developed markets which are going down.”

Rock considers emerging markets have already learnt from debt crises and are fiscally more prudent than the developed markets. He says: “Emerging market countries are empowered now.”

OPM chief investment officer Tony Yousefian has added 7 per cent in non-sterling assets to the £40.6m fixed-interest fund since May, particularly in emerging market debt and Asian currency. He says: “Our outlook for sterling is bearish against Asian currencies owing to very weak UK activity.”