Peter Fitzgerald

“According to Bloomberg the P/E on the Euro Stoxx 50 is now 8.63 with a dividend yield of 5.17 per cent (as of 21 May). For those investors who view risk as the permanent loss of capital rather than volatility, we are of the view that risk is actually lower than many appreciate. With this in mind, we have decided to maintain our asset allocation and will consider reducing fixed income and increasing equities should the current correction continue. Our managers have performed as expected and of particular interest was the positive return in April of almost 3 per cent from Eclectica.”