Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Fund of the Week: AXA Framlington Managed Balanced

The year is close to done and dusted, and it would not be hyperbole to say it has been a very difficult one for investors.

The bad news is that on the surface 2012 looks no better with the central issue of disarray, Europe, unresolved.. The good news is companies are extremely healthy and order books are still full. In addition the emerging world has shown signs that inflation is starting to ease. Furthermore, in the US the housing market shows signs of having hit the bottom and unemployment is falling.

While the situation in Europe is bleak, it is these areas that could stage a tentative recovery and prevent a global recession.

One thing that investors have been reminded of this year is that asset class diversification is key to investing. If you had avoided bonds all together this year you would have missed precious gains.

Richard Peirson, manager of the AXA Framlington Managed Balanced fund, is cautious but shares the view that we are not headed for the abyss. His long-term performance shows that he has a habit of getting those calls right. The fund is split around 80% to equities and 20% in cash and bonds.

On the equity side he has recently been slowly tilting it towards companies that will benefit from a US recovery while in bonds, he has been getting very cautious about the lack of value available and has moved his exposure towards the shorter end of the market or into cash.

This is one to pick if you anticipate a difficult but not horrible outlook for the future.

Our Citywire Selection picks are based on our totally impartial analysis of the funds and managers we believe have established the best track records, operate the best investment strategies and offer the best potential for investors.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play IBT's Craig: Why we upped gearing following biotech sell-off

IBT's Craig: Why we upped gearing following biotech sell-off

International Biotechnology trust, managers Ailsa Craig and Cal Harald Janson, are continuing to find attractive opportunities, particularly in European names.

Play Sector Spotlight: Thomas Miller's Jordan Sriharan on bonds

Sector Spotlight: Thomas Miller's Jordan Sriharan on bonds

With the US interest rates on hold for now, we suss out how wealth managers are managing their fixed income exposure in this environment.

Play Kames' CIO: US bowed to international pressure

Kames' CIO: US bowed to international pressure

Stephen Jones, chief investment officer of Kames Capital, said the US domestic economy passed the test, but international concerns weighed heavy.

Wealth Manager on Twitter