McDonald says in a difficult environment like this, all assets are to an extent correlated with each other, making it difficult to focus on a particular area.
He says: “To have a view on equities exclusively, without having a look at what is going on in bonds, currency, prop- erty and commodity markets, will mean you miss the big picture and the last year or so has been a big picture market.”
He says managers have had to be on top of the macro backdrop and understand what the key drivers have been.
McDonald says: “At various points, it has been a number of things but it has been the macro view that has largely driven capital markets.”
Hargreaves Lansdown inv- estment manager Ben Yearsley says: “I am not disagreeing with the view but I think that provided you have a team leader that provides that overall view, then the rest of the team can focus on those specialist areas without any detriment to performance.”