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Iveagh: investment environment too good to be true
by Annabelle Williams on Feb 22, 2013 at 13:34
Beverley agreed the investment environment is ‘too good to be true in the short term.’
‘It’s been a jolly nice run,’ Wyllie added.
‘There’s certainly a risk in bonds at the moment,’ Beverley said, while the CIO added there is a risk of government bond yields rising.
Earlier in the year, the team trimmed overall bond exposure to 23.2% ‘just to have no more than we have to have for portfolio defence’.
‘We have taken government bond weightings down to 7.5% so we are 2% underweight there,’ Wyllie said, although the weighting is still classed as ‘adventurous’.
‘You need a good reason to hold anything less than an adventurous weighting in government bonds because you need something there just for portfolio protection – but I don’t want to have any more there than we have to,’ he explained.
Given the mix of positive signals and uncertainty over sentiment, Wyllie said he did not see a reason to up risk at the moment.
‘I don’t think markets are getting carried away with themselves that much. I don’t feel under any pressure for us to put more risk in the profiles because I think we have got enough.’
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