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Diversifying equities is 'among the hardest things to get right'

Diversifying equities is 'among the hardest things to get right'

Trying to time the rotations of the equity markets “is something very few can do successfully”, and means being permanently diversified is key, Andrew Surrey, senior national development manager at Vanguard, told the latest FTAdviser podcast.

He said: “The impact of factors or investment styles can be seen in markets this year. We are recording this on Halloween, and year to date growth has lost 16 per cent, while value his up 4 per cent.

"Now if someone timed that right, they have done very well, but it is one of the hardest things to do. That’s why with our global equity fund, we maintain a balance, allocating 50 per cent to a growth manager and 50 per cent to a value manager.”

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His fellow guest on the podcast was Charlie Parker, managing director at Albemarle Street Partners.

Parker said: “Getting factor exposure right is absolutely key. We tend to tilt between the factors based on the prevailing inflation and interest rate environment, but would always have a balance. What we want from the funds in which we are invested is that they have a strong flavour of the factor we want. We want them to stick to their process and be prepared to be out of fashion for a year or two.”

You can listen to the full podcast by clicking on the link above. 

This podcast is part of our Vantage Point Investing for Alpha series, and is sponsored by Vanguard.