We combine deep qualitative analysis by our team of investment specialists with powerful quantitative analysis from our proprietary software to inform an unconstrained approach for strong, risk-adjusted returns.
The end of 2018 saw increased volatility and this is to be expected as quantitative continues around the world, particularly in the US.
Looking to 2019, the US continues to do well economically and economic growth is set to continue in 2019 but the impact of the trade dispute between the US and China is beginning to be felt by US corporates. In the UK, it is impossible to know what the Brexit outcome will be, so we have a neutral stance, while in Europe the political situation in Italy and France are the two biggest worries beyond Brexit.
As a result, we are risk averse and holding higher cash levels; we have lower levels of equities and are transitioning fixed income holdings away from high yield towards investment grade and government debt.
Watch the video to hear more from our Head of Investment Management, Richard Gray.