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A spotlight on James Brearley's private client performance
Markets
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.
Positioning
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.’
In terms of UK allocation, cash invested in Standard Life’s UK Equity High Income fund was been moved into the Trojan Income fund, on the back of the latter’s long-term performance.
Performance
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.’
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