Join Alastair Randall, Senior Portfolio Manager, and a panel of
investment professionals as they discuss US dollar strength, the performance of mid-cap equities and our view on fixed income.

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A strengthening US dollar

William Hobbs, Equity Strategist, discusses the US dollar strengthening in the third quarter particularly against the euro, although he doesn’t believe this will weaken the US economy since it is largely driven by domestic consumption

Underperforming mid-caps

Tony Mee, Senior Portfolio Manager, believes the cyclical nature of small and mid-cap equities means they have underperformed recently in a defensive market, although he still sees potential here, particularly in the US. This view is boosted by falling energy prices.

Adding back equities

Roberta Gamba, Head of Portfolio Construction, explains how our tactical asset allocation committee (TAC) took advantage of mid-October’s correction in equity prices and used spare cash to invest back into US large cap equities. She advises we are looking for similar opportunities caused by increasing volatility.

Explaining our position on fixed income

We were underweight and short duration in fixed income during the third quarter, despite positive returns at the longer end of the curve. Jaime Arguello, Head of MultiManager and Manager Selection, advises that this was because we see more value on the equity side from a long-term perspective. We remain underweight, but maintain a significant position as a counter-balance to equity exposure, in order to manage our risk budget. 

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