Mistrust of the US market shows no signs of ending

Sector allocation is becoming more important for managed funds as the importance of the technology theme continues to grow. Ken Forman, head of strategy at Standard Life Investments, says: "Sectors tend to move with the local markets, not globally, but we are starting to see some uniformity in technology. Country allocation is still more important in constructing a portfolio even though sector correlation is increasing." Sarah Arkle, head of equities and managed funds at Threadneedle, believes it is becoming increasingly inappropriate to look at asset allocation completely at a geographic ...