View more on these topics

City Financial’s Harris wary of US

City Financial head of multi asset Mark Harris has trimmed back exposure to the US by 1 per cent as he is wary of a potential market correction.

Harris pulled 1 per cent out of the £63m Miton US Opportunities fund, co-managed by Nick Ford and Hugh Grieves, and has instead chosen to place some put options in the market in the event of future volatility.

Harris says: “I do see potential for corrections in the US. I have bought some put options on the S&P 500 to put off some equity beta risk. 

“It is like portfolio insurance and, for me, it is about reducing beta through derivatives.”

Separately, Harris sees potential for buying back into emerging markets.

He says: “You should not treat all emerging markets the same and there are some markets we can make a lot of money in.

“With that in mind, we have made a very slight dip into the EM market with an exchange trade fund to buy into the Indian equity market.”

Harris says he is using this ETF while he looks at which active emerging market fund manager to invest with.

He adds: “I am looking at a few emerging market fund managers to include. Maybe a more aggressive Asian equity manager? Apart from that, everything will be left alone.”

Hargreaves Lansdown senior investment manager Adrian Lowcock says: “It is a prudent move as the US is certainly not cheap. It is risky as all it takes is a little bit of negative sentiment and people have a knee-jerk reaction. 

“Also, emerging markets are starting to look cheap.

India is interesting as their election is coming up and there is potential for decisive reform if the opposition is elected.”

Recommended

FCA-FSA-Building-700x450.jpg

NAO warns on high FCA staff turnover

High staff turnover rates at the FCA and Prudential Regulation Authority risk undermining confidence in the regulators, according to a report by the National Audit Office. The report found that more than a third of staff at the FCA have less than two years’ service at the regulator and its predecessor, the FSA. Staff turnover […]

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery

FCA-FSA-Airplane-700x450.jpg
7

FCA may quit Canary Wharf offices

The FCA is looking at quitting its Canary Wharf offices and moving to the Olympic Park site in Stratford. The regulator is reportedly considering moving its offices to The International Quarter, a new development between Stratford station and the Olympic stadium. This is Money cites a report from Estates Gazette which says the FCA’s current lease […]

Chris-Prior-MM-Peach-700.jpg

Case Study: The interaction between benefits and equity release

The problem: My client is looking at various options in order to raise finance, one of those is equity release. I am conscious that they also receive a number of benefits, and having spoken at length to them, it appears they may also be entitled to other benefits which they are not currently receiving. Given […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment