Asset AllocatorMar 16 2023

RSMR looks to cash while shunning bonds

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
RSMR looks to cash while shunning bonds
Cash and defensive plays are popular with Yorkshire-based RSMR right now. (Stein Egil Liland via Pexels)

The Asset Allocator carrier pigeon was up north recently and returned bearing the latest portfolio data from RSMR.

The Yorkshire-based DFM appears to have a fondness for cash right now, with 27 per cent of its Defensive and 13 per cent of its Cautious portfolios in cash.

This is high, compared to an average for the DFMs we cover on our database of 9 per cent.

That allocation is at the expense of equities, with RSMR holding 10.5 per cent, compared with an average allocation of 22 per cent for the average Cautious portfolio on our database. 

RSMR's Balanced portfolio is more in line with its peer group average, holding 4 per cent cash, while its equity allocation of 51 per cent is marginally underweight relative to the 55 per cent average among its peers.

In terms of fixed income exposure, the average exposure in the Balanced portfolios of the DFMs we cover is 26 per cent, and RSMR is in line with this as well, at 27 per cent. 

Bonds as a defensive asset class are marginally less appealing for RSMR, with a 39.5 per cent exposure to that asset class in its Cautious portfolio being considerably underweight the 55 per cent of the peer group. 

In its Income portfolios, RSMR has an allocation of 48 per cent to equity, compared with 48 per cent for the sector average, and is moderately overweight to UK equities relative to the peer group.