Bernard Aybran

“The equity exposure of our balanced portfolio has been slightly reduced and stands at 40 per cent as of the end of February. The cash level stands at its highest ever, at 40 per cent: the risk-reward does not favour a regular fixed income investment and we consider it is still too early to buy into the high yield corporate market, where opportunities are slowly building up. So, what is left? Eight equity funds, without any addition during February, but one deletion (China Equity) and one long held position halved, because of hard times for its favoured themes (China and financial markets).” cut: The remaining fund managers are some of the most conservative throughout Europe and the US. Whereas it is not our job to pile in cash positions, it is our business to avoid the poor risk-reward trades, which are abounding by now. And at some point, it will be important to tiptoe back into battered stocks that offer huge value.