Richard Buxton's forthcoming Schroders focused UK equities fund is designed specifically to cope wit...
Richard Buxton's forthcoming Schroders focused UK equities fund is designed specifically to cope with equity market conditions similar to those last experienced in the 1960s.
The charging details of the fund, which will be called Schroders UK Alpha, are to be revealed next week by the group but Buxton believes markets are set to trend sideways during the next decade.
It is, he believes, increasingly dangerous to use events of the 1980s and 1990s as the basis for predicting future market behaviour. He said: 'The environment now is like the early 1960s with low rates and low unemployment. Between 1959 and 1966, the market was actually lower. From 2002, this is like saying the market could be lower in 2007.'
Within such a scenario Buxton believes managers are going to have to adopt both short and long term investment strategies. He said the medium term view on stocks and sectors that currently prevails will have to change. Managers are going to be forced to take a more aggressive stance on profit-taking.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till