Andrews Gwynne ups cash as it cuts US holdings

Added 10th October 2016

Leeds-based DFM Andrews Gwynne has moved up to a near 25% cash weighting, having significantly cut exposure to US equities and treasuries.

Andrews Gwynne ups cash as it cuts US holdings

The firm reports having become progressively more cautious in its AG Portfolio in recent years, while also fearing the worst following June’s EU referendum result.

“The positive markets have boosted the portfolio healthily since the Brexit vote, although naturally with the reduced volatility that over the past two years has resulted in a far less queasy ride than most indexes,” said partner Mark Smith.

“Indeed with some US markets reaching all-time highs in late September we largely sold out of the US equity market, booking particularly healthy profits in biotech and smaller companies.

“This has been followed in early October with the sale of the remaining long-dated US treasury positions, locking in the near 40% gains since the summer of 2015. We are now almost 25% in cash.”

From a top-down perspective, Smith blamed central bank action as a cause of over 91% correlation between the MSCI’s UK and World stock market indices.

He added: “With European banking woes, global political uncertainty and market distortions growing steadily, we continue to batten down the hatches, watching for a coming storm, fearing that although the timing of the coming tempest is uncertain the longer the wait the worse the outcome.

“We do however also remain vigilant, watching for data that may tell us the turbulence abates, although nothing yet paints that happy picture.”

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Lazard Emerging Markets
Lazard Emerging Markets

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Gary Shepherd


Portfolio Adviser

Gary joined Last Word Media in 2009, becoming editor of Portfolio Adviser a year later. Previously, he worked at Incisive Media with roles across its Professional Adviser, Investment Week, Bloomberg Money and Mortgage Solutions titles. Gary has been shortlisted for various awards, winning Headline Money Investment Writer of the Year in 2010.



Investment Strategy




PA Channel Island 2016
PA Channel Island 2016

8th November 2016
The Royal Yacht, Jersey


17th November 2016
The Andaz

PA Emerging Markets 2016
PA Emerging Markets 2016

1st December 2016
The Mayfair, London

Sponsored Content

Investment Strategy