Harris says that despite markets seeing a 30-40 per cent rise since April there are enough indicators that the fundamentals remain strong for a continued push.
He says: “You cannot argue that valuations are not as cheap as they were but interest rates are being held down globally and lots of people do still remain uninvested. The crux is that the market is not expensive and there remains lots of liquidity.”
Meanwhile, the multi-manager team has recently made a £23m investment into the £101m GLG UK select fund. The fund is a core holding across the New Star active, balanced and managed portfolios with weightings between 4-5 per cent.
Launched in August 2009, the GLG UK select fund is managed by John White and Jason MacKay and looks to invest in 33 UK equities with a large-cap bias.
Harris says: “I expect we will see more of these investments form parts, if not the core of multi-manager portfolios. Experienced managers such as these can make use of the wider powers to make a significant boost to returns.”