Santander’s multi-manager team is turning its eye to the bond market for investment opportunities as it reassesses its position on equities.
Toby Vaughan and Tom Caddick, who run some £8bn for the firm including the £510.8m Santander Max 70% Shares Portfolio, have maintained an overweight to equities across their funds but plan to take another look at this over the coming months owing to ongoing volatility in the markets.
Vaughan says: “If you look at how we have been positioned, we have been overweight equities across all the funds. We are reassessing our position but are not necessarily changing it.
“We are continually looking for raising weighting within fixed interest to managers and strategies that service more returns from alpha. Within fixed interest we are tilting more towards alpha risk and, to a lesser extent, credit risk.”
Caddick adds that if any money does come out of their equity allocation, it will not be at the expense of their US holdings as they are encouraged by positive signs in the country’s housing market and consumer stocks, adding that Asian market exposure is the main area being looked at.
Chelsea Financial Services managing director Darius McDermott says: “I find this interesting because the majority of people still think equities are better relative value and there is a general nervousness of the bond market.”