Bill McQuaker, Co-Head of Multi-Assets, gives an update on outlook 2014.
Bill McQuaker, Co-Head of Multi-Asset, explains why he believes that softer economic data coming out of the US will likely prove temporary, and why the US ‘thaw’ is potentially best played through exposure to Japan and Europe.
He also clarifies his continued preference for exposure to developed markets over emerging ones and why the Multi-Asset team’s fixed income exposure remains relatively limited. He argues that high yield is the safest place to be in the bond markets, but does not necessarily offer great value. The team’s portfolios are using property as a proxy for bond exposure as they believe it offers better value, yield, and should benefit from the improving UK economy.