Fund management groups have started to move away from more risky bond and equity holdings as the outlook for markets over the rest of 2015 look increasingly bleak.
According to John Vail, chief global strategist and head of Nikko Asset Management’s global investment committee, the firm has a less-optimistic view about US markets in particular.
This has seen the committee move its overweight stance on global equities, which was largely in place since September 2011, down to neutral.
David Jane, co-manager of Miton’s multi-asset fund range, has also adopted a more conservative portfolio, partly because of the “worrying broader widening of credit spreads throughout the high-yield market” and weakening corporate profits, given “the market is not obviously cheap”.
Adviser view
Nigel Green, founder and chief executive of international wealth adviser the deVere Group, agreed that the slowing down of Chinese economic growth and a poorer US corporate earnings growth cycle has been a worry, despite a slight rally towards the start of October.
He said: “Investors need to brace themselves for a rocky time ahead. October is likely to be characterised by volatility.
“As such, investors must act now to ensure that that they have a truly well-diversified portfolio.”
