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The latest findings from independent financial research company Defaqto suggest that fund managers are acting more cautiously than 12 months ago because of growing fears of a double-dip recession.
Fraser Donaldson, Defaqto’s Insight Analyst for Funds, said: “The level of confidence and uncertainty in the market is usually reflected by the cash element in funds. A year ago we saw these levels falling to less than 5%, the lowest for several years. There was a confidence that the recession was over and that the first green shoots of sustained recovery were being seen. However, the levels of cash in July 2010 – almost 2% more than October 2009 – indicate a dip in confidence.”
In July 2010, cash accounted for 6.6% of fund asset allocation. In this period, UK equity exposure also fell to its lowest level for several years – 30.8% – while property and alternative asset classes increased as managers looked further afield to achieve positive returns.Defaqto’s free guide to multi-managers has been updated and provides IFAs with the investment information they need when selecting multi-manager funds for their clients. It includes an updated statistics section, with both asset allocations and performance-related data as at 1 July 2010. The issues and events that have affected the industry over the past six months are also included.
The guide covers all aspects of multi-manager funds, including:- Industry developments since the last publication in February 2010
- Information on the most consistent fund managers
- Analysis of the sector, including market confidence
- How to select a multi-manager to match client’s needs
- Fund style indicators
- Performance ratios
- Latest asset allocations
- Fund manager contact details
The updated Multi-Manager guide can be downloaded free from www.defaqto.com/adviser/ifa/guides
