View more on these topics

Swip to hike equity and commodity weightings

Swip multi-managers Mark Harries and Simon Wood are overweighting equities and commodities across the diversity, select boutiques and optimal multi-asset funds.

The managers build their asset allocation decisions around the views of the managers running the underlying funds in the Swip portfolios. Harries and Wood prefer experienced fund managers that have managed money throughout the economic cycle. Bond managers will be asked for their views on equity markets and vice versa.

The Swip managers are cautiously optimistic on equities because companies with strong balance sheets and a low level of debt are generating cash and spending it. Valuations are also low relative to the earnings that have been generated and the results that have yet to come through.

The flipside of Swip’s positive outlook on equities is its underweight of alternative strategies such as hedge funds and absolute return strategies, which are preferred when the managers are not keen on equities.

Commodities exposure in the Swip funds is a play on emerging market growth but the team expect prices to be volatile, as shown by last week’s falls.

Harries says commodities tend to have low correlation to traditional asset classes such as equities, so it can bring diversification into the Swip portfolios.

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