New Star opposes F&C's equities stance

According to F&C’s asset allocation team, the recent rally in equities is largely over in the short-term and there is “little choose between equities and bonds” but the firm has decided as a result to move money out of European and emerging market equities, and is now pulling out what it sees as the best gains of the recent three-year bull market. Admittedly, F&C has made this move at the beginning of September rather than in October – therefore contrasting with New Star’s data - but Paul Niven, head of asset allocation at F&C, suggests the risk/reward trade off from the equities sector is...