Rathbones' David Coombs has taken risk within the Multi-Asset Strategic Growth Portfolio to its lowest level since launch, and recently approached the board about raising the fund's limit for investing in liquid assets on the back of the German government bond market dropping into negative territory for the first time ever at the start of August.
Head of multi-asset investments Coombs, who runs the four-strong multi-asset range including the £494m Rathbone Multi-Asset Strategic Growth Portfolio, which launched in 2012, says liquidity risk is the key consideration in managing the range. The manager divides holdings into three buckets: 'liquidity' such as cash, G10 government bonds and A+ investment grade debt; 'equity risk' such as corporate bonds, high yield bonds, REITs and equities; and 'diversifiers', such as hedge funds, commercial property, gold, infrastructure and non-G10 government bonds. "We are running high levels of ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
