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Why this wealth manager is sticking with emerging markets
by Elsa Buchanan on Oct 29, 2013 at 14:54
Kevin Gillibrand (pictured), director and co-founder of Fraser Wealth Management, is keeping faith in emerging markets in spite of recent underperformance.
A typical medium risk model at the Liverpool-based firm has around 5% in emerging markets through the Invesco Perpetual Emerging Countries fund, and a further 5% in Asia ex Japan. In spite of recent underperformance, he contends ‘better times are ahead’ and is keen to highlight the underlying growth that countries such as China are still experiencing.
In Asia Pacific, where the team backs Newton Asian Income , the director plans to add a further 5%.
Gillibrand remains bullish on equities on the back of good economic data.
‘The data appears to show we have averted catastrophe, leading to a rally in the markets before year-end. While the world turns to another cycle, equities will be the best performing asset,’ he explained.
In a typical medium risk portfolio Gillibrand is bullish on growth assets and highlights UK small caps as a key driver of performance.
In Europe Gillibrand expects to slightly reduce exposure to the Baillie Gifford European fund.
‘This will be redistributed to my 11% position in the Old Mutual North American Equity fund, on the back of an uplift in sentiment,’ he explained.
He also anticipates reducing the model’s 12% allocation to the First State Global Property Securities fund by around 5% on a worsening outlook for the asset class.
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- Invesco Perpetual Emerging Countries Acc
- Newton Asian Income GBP Inc
- Marlborough Special Situations
- Liontrust Special Situations Fund (R)
- Baillie Gifford European A Acc
- Old Mutual North American Equity A Acc
- First State Global Property Securities A GBP Acc
- Legg Mason Japan Equity A
- M&G Strategic Corporate Bond A Inc