Reuters.uk – Paul Kim, a fund manager at IMS, told Reuters he has increased exposure to absolute return-oriented portfolios because he believes the stock market will remain turbulent this summer.
Kim, a multi-manager who co-manages around 4 billion pounds in assets, said he has increased exposure to the IVI European and the Prusik Asia funds, both of which aim to preserve or make money in all market conditions.
Multi-managers hold a basket of funds, which are usually run by external fund managers.
Over the past seven weeks the MSCI World index has fallen around 9 percent on concerns over the direction of inflation and global interest rates and worries over high commodity prices.
“The summer months could remain choppy … it takes a huge amount of time to build up confidence. Volumes have dropped a lot … which exacerbates the problem again. The direction of the stock market is very unclear,” Kim said in a recent interview.
“Because of our concerns we’ve been taking a lot of risk out of the portfolio and we’ve built up absolute return-oriented managers.”
