Multi-managers up bond exposure and reduce equities in Q1

Increasing cash allocations

Multi-managers redeployed cash reserves and increased their bond exposure for the second consecutive quarter in Q1 2017, quarterly research carried out by distributor Harrington Cooper shows.

Bond exposure reached a three-year high in a quarter defined by the triggering of Article 50 and the presidential inauguration of Donald Trump, as balanced models grew their positions by just over 1% to 25.1% overall. Income models also grew their exposure to non-investment grade bonds by 1.9%, while investment grade allocations rose by 0.9%. Overall, average exposure to bonds across income models rose by 1.8%, bringing the total up to 40.2%. Harry Dickinson, managing partner at Harrington Cooper, said: "Investment grade bonds proved particularly popular during the first quarter [as] ...