Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a713257
Leodis Wealth: UK small caps look pretty as American beauty fades
by Elsa Buchanan on Oct 31, 2013 at 16:02
‘We tended to be overweight, with large holdings across all strategies, but we are just starting to peel back slightly in light of how valuations look stretched.’
The manager now prefers Europe, where he has 2.5% exposure, and he points to the improving economic backdrop in Spain as a potential driver of performance.
Ghosh cites A-rated Will James’s Standard Life European Income fund and Threadneedle European Select , run by Citywire AA-rated David Dudding, as his top picks on the Continent, despite slight recent underperformance from the latter. ‘It invests in really good names,’ he said.
However, Ghosh is increasingly less positive on Asia on the back of America’s pending move to taper quantitative easing. Despite this he has maintained a long-term holding in Aberdeen Asia Smaller Companies , which has performed strongly.
‘The rest of the world has taken their foot off the gas because of concerns about QE, but Japan still has the print button on, and its currency has become very competitive,’ he said. ‘I believe China is not growing as much as has been stated by its own government.’
Delivering the goods
About 15% of the portfolio is held in alternatives, including hedge funds, commercial property, infrastructure, private equity and commodities, with 2% in gold and gold miners.
‘I’m not considering coming out [of commodities] despite their underperformance. I’m not holding gold for its performance but because it is a hedge,’ said Ghosh.
News sponsored by:
Today's top headlines
More about this:
Look up the funds
- Cazenove UK Smaller Companies B Acc
- S&W Revera UK Dynamic
- Old Mutual Global Strategic Bond A Inc
- Royal London Sterling Extra Yield Bond A
- Jupiter Strategic Bond Acc
- Standard Life Inv European Equity Income Ret Inc
- Threadneedle European Select Inst Net Acc EUR
- Baillie Gifford Japanese A Acc
- Jupiter Japan Income Acc
- Aberdeen Asian Smaller Companies USD
- Newton Asian Income GBP Inc
- Schroder Asian Alpha Plus A Acc