Multi-managers raise exposure to alternative UCITS funds amid 'choppy equity valuations'

Equity exposure remains high

Multi-managers increased allocations to alternative UCITS funds by 0.55% to over 10% during the fourth quarter of 2017 as a result of anticipated market volatility, according to research by fund distributor Harrington Cooper.

The research tracks the asset allocation shifts of 32 multi-manager and model portfolio funds that follow a balanced profile with combined assets under management (AUM) totalling £11.2bn, while also looking at the allocations of 16 income-focused multi-manager funds totalling £5.5bn. Harry Dickinson, managing director at Harrington Cooper, said the managers had expressed concerns about the impact of rising inflation and interest rates in both traditional bond and equity markets resulting in alternative UCITS fund exposure growing to 10.47% in balanced portfolios. He said: "Investors h...