Head of multi-manager Tony Lanning acknowledges some investors are showing renewed interest in the sector, which has seen positive returns over the last two months, but feels it is still too early to put money in.
The Gartmore multi-manager balanced and cautious funds each have a small holding in Aberdeen UK active property, but this reflects Lanning’s view that commercial property should not be ignored in the long term as it is a good diversifier. He does not own it across the multi-manager range.
Lanning says all Gartmore’s multi-manager funds have been fully invested since March but he has recently been raising a small amount of cash. He says this is not because he thinks the rally will not continue but are the result of taking profits in areas that have performed well.
Unlike some managers, the Gartmore multi-manager team believes that a V-shaped recovery could be bad because there will be pressure on central banks to ease up on their measures to stimulate the economy if the recovery is too quick.