Thames River co-heads of multi-manager Gary Potter and Robert Burdett are to continue adopting a cautious outlook on equities, preferring to hold high levels of cash and other asset classes.
The pair, who joined Thames River from Credit Suisse last year, believe that equity markets are likely to remain volatile for the forseeable future with downside risk somewhat contained by expectations of a further interest rate fall.
Potter and Burdett have reduced their geographical asset allocation to the developed world in favour of developing markets, with the smaller quota to be used in Japan and the US as oppose to the UK and Europe.
The pair are particularly keen on value in US equity markets given the self-help being administered to stimulate the economy. Meanwhile, Japan represents good value relative to other markets and its own track record.