Brooks Macdonald cuts equities and UK property OEICs in favour of REITs

Added to income-focused hedge funds

Edward Park, director on the investment committee at Brooks Macdonald, has told Investment Week how the group has cut UK equities in favour of structured products, hedge funds and convertible bond funds, while also halving UK open-ended property exposure amid liquidity concerns.

London-based Park, who has worked at the firm since he joined as a trainee investment manager in 2009, said the team has particularly reduced allocations to UK equities, where they are negative on the inflation outlook and its effect on real wages and consumer spending. He said: "We have been cutting the UK, particularly funds focused towards domestics, based on our consumer outlook. Political uncertainty is also weighing on confidence."  Brooks Macdonald opens Wales office headed up by ex-Brewin Dolphin man Overall, equities have been reduced only slightly by 1%-2%, as the firm ha...