The Times: Your action plan for an uncertain market | Whitechurch Securities Limited | Redland, Bristol

Lake view

The Times: Your action plan for an uncertain market

“There has been historically low volatility this year, surprisingly so given the range of uncertainties. Stock markets have shrugged it off. It would be no surprise if volatility picks up in 2018,” says Gavin Haynes, the chief investment officer of Whitechurch Securities, a wealth manager.

...Mr Haynes says: “It has been a difficult environment for absolute funds because all assets and stock markets have performed well. But it could be the time when such strategies are called on to provide diversification in your portfolio.”

...However, investors pulled nearly £6 billion from the fund in the first half of this year after poor performance relative to other funds in the sector over one, three and five years, according to data from Citywire. “It has become a victim of its success, because it has got so large,” says Mr Haynes.

He rates the Jupiter Absolute Return fund, run by a fund manager with experience in shorting stocks. Mr Haynes also likes the Janus Henderson UK Absolute Return fund and the Schroder UK Dynamic Absolute Return fund.

...Mr Haynes suggests those with a cautious outlook should allocate between 15 and 20 per cent of their portfolio to a range of diversifying funds, including absolute return.

Full article at:  The Times: Your action plan for an uncertain market