Wealth managers caution equities face setback despite clamour for risk

Wealth managers are positioning clients' portfolios cautiously this quarter amid expectations of a setback for equity markets, despite growing appetite for risk among investors.

Following last year’s strong run, clients are keen to move up the risk spectrum this year, but wealth managers are advising investors not to move wholeheartedly into equities. Barclays Wealth & Investment Management’s European CIO, Kevin Gardiner, said the firm has moved heavily overweight cash on fears an equity market correction is “long overdue”. It has shifted clients with a moderate risk profile from neutral to a 7% “strong overweight” in cash, taking profits on developed market stocks. “We have pulled back from developed market equities and have moved overweight cash, which w...