UK growth raises questions on risk pricing

The UK economy has registered its 60th quarter of continuous economic expansion, a remarkable achievement that reflects wider global trends. It is this stability that has shaped recent investor attitudes towards risk, and what return they expect for a given level of risk, not just in equity markets but across all asset classes. In many instances risk is not being appropriately priced, and this is reflected in our portfolio positioning. When you take a look at the global economy, there are reasons to be cautious. The US sub-prime lending debacle is yet to fully play out, and this could have ...