The multi-manager team at LV= Asset Management says it is mindful of the potential setbacks to equity markets but is positive in the long term.
The firm has taken a broadly neutral approach to equities within its multi-manager portfolios, with a relatively defensive tilt during the upturn, where it shifted away from developing markets to developed markets.
Head of multi-asset and fund selection Tom Caddick says this move has paid off on a risk/return basis and that the multi-manager portfolios have also benefited from exposure to Japan. Caddick says that there are plenty of other markets that look more attractive but Japan is valuation driven and attractive from an equity basis.
On bonds, Caddick believes the big returns from the corporate sector have already been seen but they still look relatively attractive compared with cash and from a stock-specific viewpoint.
He says: “We have shifted towards more strategic bond funds that can take advantage of opportunities in different areas.”