"That said, we still think the US is worth looking to for diversification purposes, and some of our mandates do hold US equities for exactly that reason.
"But where we do, the strategies we use put us far from the madding crowd.
Article continues after advert
"In particular our value funds or small-cap mandates (or both), as these don’t hold the kind of middling ‘growth’ companies that have been bid up by price-insensitive index buying.”
Andrew Cole, multi-asset investor at Pictet, said US equities have been “the place to be” over the past decade, partly because the US economy has grown at a much faster pace than others, but he expects the rest of the world to Catch-up with the US in 2020, boosting the returns of those equity markets relative to the US.
Page 3 of 3
