Managers reinvest cash as Ukraine turmoil tempers 'euphoria'

Multi-asset managers are using setbacks such as that caused last week by unrest in Ukraine to increase their exposure to buoyant markets.

A number of multi-asset managers had cooled their view on equities at the end of 2013, having made double-digit returns. Instead they looked to lock in gains by increasing cash weightings. Subsequently, 2014 has got off to a tough start in some areas, with an emerging markets sell-off in January – caused by the US Federal Reserve’s decision to taper bond purchases – followed last week by more market jitters after Russia's incursion into Ukraine. The events have tempered market euphoria, investors said, and they continue to eye further pull-backs as a chance to invest. Marcus Brooke...