View more on these topics

Octopus is expecting second-half rally

The multi-manager team at Octopus Investments is maintaining an overweight position in equities in anticipation of a rally in the second half of the year.

The team did not like equity markets in May because prices were drifting down and buyers were thin on the ground. It held more in equities than its peers and wanted to reduce its weighting slightly because markets were trading sideways.

To equip its portfolios for these market conditions, it increased its allocation to alternative asset classes through the Aspect diversified trends fund, a commodities trading adviser or managed futures fund, and the Melchior European absolute return fund.

The team sat tight during the market correction in June and then took some profits when the market rallied later in the month.

It believes equities are now set up for a good second half, driven by better than expected US corporate results and mergers and acquisitions activity. Fund manager Bish Limbu says: “Equities are cheap and getting cheaper by the day. As long as companies make profits, we think there will be a second half rally, with capital expenditure and M&A driving the growth that is coming through.”

Recommended

Higher LTVs held back by strict criteria

The range of new mortgages at 90 per cent loan to value has increased significantly since the beginning of the year but brokers feel strict credit criteria and the price of these deals are hampering their take-up. Research from Moneyfacts.co.uk, which reflects deals available both direct and through intermediaries, shows there has been a 30 […]

Government to impose “cost ceilings” on public sector pension schemes

The Government will impose scheme-specific “cost ceilings” for public sector pensions in an effort to limit taxpayers’ exposure to unfunded liabilities. In his report on public service pensions reform, published in March, Lord John Hutton recommended setting a “clear cost ceiling” for public sector pension provision. In a statement, the Treasury says it plans to […]

Do it for charity

Money Marketing editor Paul McMillan and news editor Nicole Blackmore last week completed a four-day 300 mile cycle ride from London to Paris to raise money for Help for Heroes. Around 60 cyclists, including a large number of IFAs from Honister Capital, who organised the trip, raised over £60,000 for the charity. There is still […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com