Cash positions are now into double figures across the range, up to a maximum of 24 per cent on the multi-asset growth fund.
Head of multi-manager Graham Duce says the group remains a seller, given the market outlook and fears that December could also be a difficult month.
He says: “We have raised cash through selling the ishares exchange traded fund we have been making use of recently having raised the exposure after cutting our assets with BlackRock’s UK absolute alpha fund. The trend has been to use ETFs on weaker days in the market and it has been a system that has borne fruit for us in recent weeks.”
The multi-manager team are continuing to retain their cautious stance over opportunities in the credit market.
Vice-president of multi-manager portfolios Scott Spencer says: “While we are hearing from many bond managers that this is a once-in-a-lifetime opportunity, credit spreads are widening and greater opportunities may arise in future. We use BlueBay Asset Management, a fixed income specialist which works largely with hedge funds.”
Duce says the firm has been moving away from UK funds recently. For example the 120m constellation fund now has a greater exposure to Japan at 16.3 per cent than the UK at 10.5 per cent).