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A spotlight on Addidi's private client performance
Markets
by Annabelle Williams on May 02, 2012 at 00:01
Anna Sofat, founder and CEO of Addidi, and a former Wealth Manager cover star, thinks the gilt party will come to an end soon and is edging out while the going’s good.
Positioning
A Moderate Portfolio at Addidi has a 50% equity weighting, and while this may seem unusual to some, Sofat points out perhaps managers are being too cautious.
‘If we look at discretionary managers, five years ago they would have had 80% exposure to equities, but now a lot of them have only 20-30%,’ she said.
‘I know we are managing risk, but have clients changed so much that their risk profile has gone from having 80% to 30% in equities? I don’t think it has, I think the main issue is that previously they were taking too much risk and now they are taking too little.’
While the portfolio has a weighting to absolute return funds, Sofat said she feels a little ‘jaundiced’ about the sector.
‘There’s a lot of money going into absolute returns but not many have given a decent return,’ she said.
Performance
Over 12 months the portfolio has returned 5.68% compared with 0.64 for the Apcims Balanced benchmark, which she attributes to a call to go into index-linked gilts ‘before everyone cottoned on’.
‘That was my best call last year. I think we probably went into it at the right moment and we were probably lucky. We benefited from that uplift last summer.’
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