View more on these topics

Octopus funds revert to target equity levels

Multi-manager Octopus Investments has rebalanced the risk-graded portfolios in its Octopus Portfolio Manager discretionary fund management service back to their target equity weightings.

The team expects global economies to keep growing but possibly at a slower than expected pace. On that basis, it says equities look like a bargain, at least temporarily.

Portfolios with risk profiles three to 10 invest in equities, with exposure ranging from 20 per cent only in UK equities to 100 per cent in global equities. Within portfolios that invest in fixed income and alternatives, Octopus has also reduced fixed-income weightings by 5 per cent and reinvested the proceeds into alternatives.

It believes that sentiment is driving markets but highlights the problem this is causing bond managers. The firm says high inflation and 10-year US Treasury yields falling to record lows at below 2 per cent present a paradox. For Octopus, yields at these levels suggest investors are willing to keep buying bonds because they do not want to be overly exposed to volatility in risk assets such as equities. But the downside is that the real value of their investment will decrease through inflation.

Octopus says this leaves bond managers with the dilemma of following their logic and steering clear of sovereign debt or following market sentiment, which still sees them as a safe haven. Octopus’s reduction in fixed income is modest but reflects its increasing concern about the outlook for fixed income in general and corporate bonds in particular.

Chief investment officer Lothar Mentel says: “We see a stronger investment case for increasing the weighting in alternative strategies, which at the moment offer better returns for similar levels of overall investment risk. We may revert to our original investment profile target weights once a clearer outlook for fixed income emerges.”


Honister changes charging model due to increased costs

Honister Capital is revising its charging model in a move which is likely to see advisers pay more in charges due to increased business costs. The new charging model will be introduced in two stages. From November 2, Honister advisers will pay higher charges through the firm’s existing charging structure. Honister says this is to […]


Sesame Bankhall Group director Keith Gilmour leaves

Sesame Bankhall Group business development director Keith Gilmour has left the firm after only joining in November last year, Money Marketing can reveal. Gilmour joined Sesame Bankhall from Positive Solutions, where he was marketing director, as part of last year’s senior management restructure which also saw George Higginson join from Intrinsic as chief operating officer. He […]


FTSE blog: FTSE 100 rises 2%

11.52: The FTSE 100 has risen by 2.2 per cent this morning with banks continuing to lead the rally. Royal Bank of Scotland made the biggest gains with the banks’ share price rising 7.6 per cent. Barclays and Lloyds Banking Group both saw their share price jump 6 per cent this morning. 10.12: The FTSE […]

Broker homeloans rise as direct deals dive

The number of mortgage products available to intermediaries has increased by 35 per cent since January while direct-only products have fallen by 29 per cent in the same period. According to figures from TrigoldCrystal, 1,974 intermediary mortgage plans have been added to the market since January, increasing the total number from 5,651 to 7,625 while […]


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 thought leadership.

    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