Columbia Threadneedle slashes multi-asset equity weightings amid trio of risks

Cautious approach due to recession and political risks

A trifecta of recession, trade and Brexit-related risks, combined with "fuller" valuations, mean the Threadneedle Dynamic Real Return fund has become more and more cautiously positioned throughout the year, according to co-manager Maya Bhandari.

The manager, who is also a member of Columbia Threadneedle's global asset allocation team, explained the fund's portfolio is therefore the most neutrally positioned it has been for five years. "As market valuations have become fuller and some of those risks on the horizon have remained, and in some cases increased, we've turned more cautious," Bhandari said. Fidelity derisks across £32bn multi-asset range With market valuations falling in Q4 2018 despite little change in fundamentals, Bhandari said the team was busy adding to positions they liked including Asian and Japanese equiti...