7IM boosts alternatives exposure to record levels amid political uncertainty

Added to TwentyFour AM's UK Mortgages strategy

Seven Investment Management (7IM) has increased exposure to alternatives, such as mortgage or futures strategies, amid highly-valued equities, low bond yields and the prospect of further political turmoil.

The group said it has been on the hunt for strategies that do not travel in the "same direction as the mainstream" asset classes as the team seek more defensive returns. It has increased the alternatives exposure on a number of its funds such as the 7IM AAP Balanced fund, which has risen from 2.5% at the start of 2016 to 5.5% last year, and 8% in May 2017. 'Traditional asset classes cannot be relied upon to provide enough diversification in multi-asset portfolios' The previous peak was 7% in October 2011 during the eurozone and US debt ceiling crises, though this has now been overt...