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Henderson Cautious Managed
by Matthew Goodburn on Aug 15, 2013 at 10:00
Burvill, who runs the equities portion of the fund, alongside bond managers John Pattullo and Jenna Barnard, is relatively bullish and expects the FTSE 100 to test the 7,000 level this year.
But he is also wary of a ‘panic moment’ for bond investors later this year.
He told Citywire Selection: ‘Despite their gentle words, the Fed will have to go for tapering as soon as they can. Gilt and treasury investors have not been investing with any thought of losing capital and GDP worries have kept people in the bond market.
‘Ten year yields on treasuries and gilts are getting higher and at some stage I expect to see a panic moment in the autumn. Equity investors will need to keep an eye on that but I remain bullish overall.’
However the fund has done well from its equity exposure in the year to date.
‘For those who have been bullish up to now it has been a simple valuation argument so if we are actually seeing an economic recovery everything would be in our favour although it is still not a one way bet.’
‘If the Federal Reserves does start to look at raising interest rates as non-farm payrolls improve, we could see more [upwards] wage pressure which could bite into corporate profits.’
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