Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a726518

OakTree Wealth’s Brady: the party is over

by Elsa Buchanan on Jan 10, 2014 at 13:07

Over the last year the portfolio has returned 20.87%, outperforming its IMA 40%-85% Equity and APCIMS Balanced composite benchmark, which rose 16.97% over the same period.

Over three years the model is up 26.22% against its benchmark’s 22.41% rise.

Alongside his play on the Japanese rally, Brady said his early exit from Asia helped performance. He cites Neptune Japan Opportunities, JO Hambro UK Equity Income and Invesco Perpetual European Equity Income funds as key drivers of profit.

‘The latter really embraced a turnaround in peripheral Europe, where the team bought good companies in bad markets,’ he added.

Conversely, Capital International Emerging Markets and + rated Richard Sennitt and Thomas See’s Schroder Asian Income Maximiser funds haven’t displayed the relative defensiveness they have in the past.

‘They underperformed because a lot of their defensives have become expensive, and they have moved a bit more cyclical to get more value on the portfolio.’

Brady is more bearish about the next 12 months, describing 2014 as the ‘end of the party’, and believes performance will be harder to come by this year.

‘Any rise in 2014 will not be as high as the past two years,’ he warned. ‘Valuations are no longer there but momentum has improved– and anything could happen.’

Performance will remain sluggish until Europe shows a move towards a firmer banking structure, Brady said, as well as profit growth coming through.

Likewise, he points to an end of the easy gains in Japan, a ‘lack of confidence’ in Bank of England governor Carney and weak currency and inflation issues in emerging markets as further hindrances to performance.

More positively, he believes that Japan’s ‘deferred’ reforms could push markets to new highs if they are finally delivered. ‘It could go through 18,000 if economic reforms go through in 2014.’

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Look up the funds

  • Invesco Perpetual European Equity Income Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Newton Higher Income GBP Inc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Neptune Japan Opportunities A Acc GBP
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Invesco Perpetual Japan Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • JOHCM Japan B GBP
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Cazenove Strategic Bond B Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • PFS TwentyFour Monument Bond A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Capital International Emerging Markets Fund B GBP
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Schroder Asian Income Maximiser A Acc
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Stephanie Butcher
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Chris Taylor
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Scott McGlashan
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Ruth Nash
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Richard Sennitt
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Thomas See
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Read more...

Co-op files £2.5bn loss after 'disastrous' 2013

by David Campbell on Apr 17, 2014 at 09:20

Sorry, this link is not
quite ready yet