Columbia Threadneedle cuts equities to neutral for first time in five years

Small overweight retained in Japan

Columbia Threadneedle has reduced the equity exposure across its asset allocation portfolios to neutral for the first time in five years.

The group has reduced its exposure from overweight to neutral in Europe ex UK, UK and Asia ex Japan as it feels the current environment is not one of positive equity returns. Mark Burgess (pictured), CIO EMEA and global head of equities at Columbia Threadneedle, said the FTSE 100 rally and recent recovery seen in the FTSE 250 seemed "somewhat unjustified and unsupported by the fundamentals". One of the causes of risk and in turn, uncertainty, is the UK's decision to leave the EU which served as a stress test on European banks, where profits and adequate capital were already fragile. ...