Model portfolio managers cut equities in Q1 amid political risk; Increasing exposure to UK property and absolute return

Barometer measures 97 UK portfolios

Natixis Global Asset Management has found UK managers of risk-rated model portfolios were reducing equities in favour of alternatives in Q1 2017, amid political concerns in the US and Europe.

In the latest UK Portfolio Barometer, which measures 97 ‘conservative', ‘moderate' and ‘aggressive' portfolios from 26 firms in the UK between 1 January and 31 March 2017, it found overall the model portfolios had shifted away from equities while upping weightings in absolute return, certain areas of fixed income and UK property. In the conservative portfolios, equity risk was reduced, particularly in the emerging markets space, in favour of real assets, alternatives and fixed income. VIX soars on rising US political tensions The report noted the move into real assets was predomina...