Investec AM's Stopford: Why I'm running my 'most defensive' portfolio

Reducing equities and corporate bonds

Laura Dew
clock • 2 min read

Investec Asset Management's co-head of multi-asset John Stopford is running his most defensive portfolio since the 2012 re-launch of the Diversified Income fund, as a result of concerns about the rising risk of a recession.

Headwinds making Stopford cautious include the tightening of financial conditions, an unclear global trade outlook thanks to the actions of US President Donald Trump, as well as concerns about Italy.  "We have become less growth-orientated as we think we are late in the bull market and the risk of a recession is building. This leads us to think we should be more cautious as valuations are less compelling," he said. The £572m fund, which targets a yield of 4%-6% per annum with less than half the volatility of UK equities, is divided into three buckets of assets; growth, defensive and u...

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