SJP's Onuekwusi trims US exposure on 'concentration conundrum'

Magnificent Seven domination concerns

Valeria Martinez
clock • 2 min read

St James’s Place newly-appointed CIO said the firm is currently underweight the US equities in favour of other regions, given the concentration risk posed by the domination of the top mega-cap tech stocks.

In a roundtable dinner on Wednesday (29 November), Justin Onuekwusi said the FTSE 100 wealth manager is spreading its risk asset exposure, with an overweight to Europe, the UK and emerging markets, which he said are trading at more attractive valuations. The CIO noted that Apple, Amazon, Alphabet, Nvidia, Meta, Microsoft and Tesla, known as the ‘Magnificent Seven', now represent over a third of the S&P 500 index, a concentration risk that he said has been exacerbated by the rise of index funds. SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

US economy expands by 2.8% in Q3
US

US economy expands by 2.8% in Q3

‘In line with the preliminary estimate’

Sorin Dojan
clock 27 November 2024 • 1 min read
Investors divided over impact of Trump's tariffs
US

Investors divided over impact of Trump's tariffs

'Means of negotiation'

Sorin Dojan
clock 27 November 2024 • 4 min read
T. Rowe Price's Ritu Vohora: Cutting through the post-election clamour
US

T. Rowe Price's Ritu Vohora: Cutting through the post-election clamour

Anticipate a rate cut in December

Ritu Vohora
clock 26 November 2024 • 4 min read
Trustpilot