7IM takes on record high alternatives exposure

Added 14th June 2017

Seven Investment Management has upped its alternatives exposure to its highest-ever levels in response to high stock market valuations, low bond yields and concerns about political instability brought on by last week’s hung parliament.

7IM takes on record high alternatives exposure

The multi-manager fund range is led by Damian Barry (pictured) and Tony Lawrence, who have, for example, increased 7IM Asset Allocated Passive (AAP) Balanced fund’s alternatives holdings from 2.5% at the start of 2016 to 8% in May this year.

The previous peak was 7% in October 2011 during the eurozone troubles and US debt ceiling crisis. These figures do not include 7IM’s gold, infrastructure, private equity, or property exposure.

In the past two months, the team has added to existing alternatives investments within the AAP range. It invested 1% of the total value of its Moderately Cautious and Balanced funds to the AQR Managed Futures Strategy fund. 

A further 1% of its Balanced fund and 2% of the Moderately Cautious portfolio were invested in CS Risk Premia, while 1% of the Moderately Cautious fund was added to the BNP Commodity Carry Note.

A number of the funds also have exposure to UK Mortgages, a closed ended investment company in the Sector Specialist: Debt sector.

Barry, senior investment manager, 7IM, said: “We have always been able to find interesting opportunities in the alternatives space and it continues to offer up options that are attractive in the current conditions.

“Last week’s hung parliament suggests plenty more political turmoil lies ahead, vindicating our effort to search out regulated and liquid strategies that don’t travel in the same direction as mainstream financial markets and are not so susceptible to negative political and economic events. 

 

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Gary Shepherd

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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.

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