UK equity holdings fall most, Natixis research shows

Graph downEquity holdings significantly fell in the first three months of the year – the majority of which came out of UK equity funds. The analysis, by Natixis Global Asset Management, reviewed 147 risk-rated portfolios across 38 firms in the months January-March 2015. The reasons for the shift out of UK equities were a tactical shift ahead of the general election in May and a wider strategic shift to de-risk portfolios after five years of strong equity returns according, to the firm. The main asset classes to benefit from the move out of UK equities were alternatives and global equity funds. In fixed income, advisers preferred corporate bonds to government bonds amid fears about duration risk and due to the continuing search for yield. Natixis also found that flexible fixed income funds offered strong performance but little additional diversification benefits due to high correlation with corporate bonds. Advisers may need to step out their comfort zone to achieve better diversification in their fixed income allocations, says Natixis. “Overall, advisers did a good job for their clients in [the first quarter] both in terms of risk and return,” says James Beaumont, head of the portfolio research & consulting group at Natixis. ©2015 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.