Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a621808
A spotlight on James Brearley's private client performance
by Annabelle Williams on Oct 04, 2012 at 07:00
Select UK funds have powered James Brearley’s medium risk portfolios, while an S&P 500 structured product has proved lucrative, says director David Hannis.
James Brearley’s balanced portfolio has seen little tweaking over the last year, but exposure to US funds has been trimmed to 7%, while a position in the Aviva Property fund was dropped and the cash moved to bump up HSBC Infrastructure Company exposure from 2.5% to 4.5%.
‘We just saw that there doesn’t seem to be any imminent pick-up in the UK economy, which we feel is necessary to move UK commercial property values along, and so we like the much more reliable returns offered by an infrastructure play.’
The balanced portfolio has returned 11.9% over 12 months to 31 August, compared to 9.6% in the FTSE Apcims Balanced benchmark.
Hannis has seen success from a range accrual structured product based on the S&P 500 built by Barclays Capital.
‘Because the product was issued at a time when market volatility was high and was there was concern about some of the banks, that 11.6% was an extremely attractive rate of return,’ he explained.
‘So you are not really taking market risk, the markets can move sideways and you are still getting something akin to upside.’
News sponsored by:
Today's top headlines
More about this:
Look up the funds
- Aviva Investors Property Trust Inc
- Standard Life UK Equity High Income 1-Life
- Trojan Income O Acc
- M&G Global Basics C Euro Acc
- Cazenove UK Opportunities B Acc
Look up the investment trusts
Look up the fund managers
More from us
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.