Schroders' Yeadon cuts risk assets on stunted growth outlook

Schroders multi-manager Andrew Yeadon has pared back exposure to higher risk assets across his three portfolios, believing the global recovery will be more stunted than previously anticipated.

Yeadon reduced exposure to equities as well as corporate and high yield bonds during May, while he also closed out a 5% short position in gilts. As the investor exodus from risk assets intensified during the month, Yeadon initiated a 5% long position in US Treasuries. The manager also built up cash in his Cautious Managed product, from 6% at end April to 15.4% a month later. Yeadon says the Schroders team altered its previous positive stance due to the deteriorating economic environment during the month. "To our minds, the outlook has become rather less promising than our base c...