View more on these topics

Husselbee still favours equities

North Investment Partners chief executive John Husselbee will not reduce the equity exposure in his City Financial funds of funds despite expectations that market volatility will continue.

Husselbee says fear is driving the market and he believes it is best to remain in equities as bonds still look unattractive in comparison.

He says bond yields in the US are less than inflation and he thinks this is not sustainable in investment terms.

Cash is building up in the City Financial funds through new money and Husselbee says he will use this for buying opportunities that have been brought about by increased market volatility. He says he has recently invested money back into his favoured themes of emerging markets and resources.

Husselbee says: “The question is, are we seeing a relief rally in a bear market or will things muster on so that we will see a return to equities? My view is more the latter than the former. When we see the climactic behaviour we saw recently, we must buy low and sell high.

“Things were a lot cheaper last week and could get cheaper. On a five to 10-year view, there is lot of value around but fund managers are not always given the time, they have to perform over short time periods.”

Husselbee is also interested in structured products based on auto-calls – the technical term for the kick-out structure.

He is looking at a product offering 12 per cent return after a year if the FTSE 100 finishes no more than 20 points below its starting value.

He says: “When fear is driving the market, pricing of these products is attractive.”


Standing firm after Matthews’ defection

Standard Life group chief executive Sandy Crombie says the change in strategy widely credited to outgoing head of UK retail Trevor Matthews was in place before he joined and will be unaffected by his departure.Matthews shocked the industry last week when he quit Standard to join Friends Provident as group chief executive.He is credited by […]

Widows’ clients hit by glitch

Scottish Widows has apologised to 7,000 personal pension customers after mistakenly sending out letters telling them that their monthly contributions would be increasing.In one case, an adviser says his client got a letter saying his monthly pension contribution would be doubling from £150 to £300, although neither the client not the adviser had requested this.Widows […]

The death of retirement – a boost for protection?

According to our recent report on the death of retirement, changes in workplace pension provision mean that coming generations of retirees could have a radically different experience of retirement from their parents. The average contribution rate into an old-style final salary pension was around 20% of total wages, the statutory minimum for a new automatic […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm