Jupiter Merlin team 'very worried' about ETF liquidity

Concerned about 'FANG' valuations

Anna Fedorova
clock • 2 min read

Jupiter's Merlin team have warned investors to keep away from passive vehicles in the current investment environment, citing concerns about liquidity and overinflated valuations.

Algy Smith-Maxwell (pictured), a manager on the Merlin team, said investors are being encouraged to put money into passive vehicles, but they should be wary of making such a commitment at a time when central banks across the globe begin to unwind their monetary easing programmes. He said: "We may well be entering a period when investors have the wind in their faces. An active manager's job is to protect returns and limit the downside [during these periods]. "This is the most important time for investors to be backing away from passives." ETF inflows in the first quarter of 2017 hit...

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