Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a519523
Iveagh: commodities next asset class to buckle
by Emma Dunkley on Aug 26, 2011 at 12:57
The firm’s chief investment officer said Iveagh’s economic indicators point to a ‘severe test’ of commodity price support levels, meaning this could be the next asset class to buckle.
In view of this, Wyllie has decreased exposure to natural resources by 50%.
Wyllie said: ‘On this basis we have tactically reduced the relevant exposures across the Iveagh Wealth fund and the Iveagh Core portfolios, exiting and halving our natural resource positions respectively, while maintaining a 5% allocation to gold.’
In the last week, gold has gone from reaching record highs above $1,900 to around $1,750 an ounce, marking a drop of $160 in two days.
Wyllie said the wealth fund remains defensively positioned amid the equity market corrections, with equity exposure of only 35%. Conversely, he added an additional option strategy should ensure the fund participates in any near-term rally.
The firm has also taken profits from its position in Australian bonds and the sale of its technology positions, to fund a larger exposure to longer duration treasuries.
News sponsored by:
Subscribe to Wealth Manager to get the inside track on your rivals' moves
Keep up to date with how your peers are allocating their clients' assets by subscribing to Wealth Manager magazine.
Today's top headlines
More about this:
More from us
- Iveagh's Chris Wyllie says rally could exceed expectations
- Iveagh flirts with risk assets but won't 'bet the farm'
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.
On the road