LGIM multi-managers rotate from EM equities to US

L&G Investment Management (LGIM)'s multi-manager team is moving its equity focus away from emerging markets towards the US and other developed economies.

In recent weeks the group's multi-managers Alan Thein and Tim Gardner have taken US equity exposure up 5% to 13% across their range while taking profits in Asia and other emerging markets. The pair believes the US labour and wage market is improving, which in turn will ignite an increase in consumer spending this year. The firm's economist Tim Drayson says he is more concerned about the rising inflation levels across EMs as opposed to developed countries. "The group is positive on the US and core Europe in the short term, but wary of the longer-term impact of inflation, believing i...