Aberdeen's multi-asset team protects portfolios ahead of 'worsening UK situation'

Reduced exposure to UK mid caps

The multi-asset team at Aberdeen Asset Management has cut UK mid-cap exposure in favour of large caps in anticipation of an "increasingly challenging environment for the UK economy", while also hedging against a potential correction in markets.

Despite strength in recent data suggesting "life has gone on as normal" since the UK voted to leave the EU, the team has refocused its model portfolio as it expects this situation to change dramatically in the coming months. For example, investment strategist Karolina Noculak said recent growth has been predominantly driven by consumer spending, which is now threatened by climbing inflation. In February, the UK Consumer Price Index reached 2.3% - the highest level since 2014 - and wages are not keeping up with price rises. Aberdeen revamps multi-asset funds after Brooks hire Noc...