UK - Growth investors, who are generally under the age of 45 with a tolerance for higher risk, should be investing in equities if they want to maximise capital growth over the next 10 to 15 years, according to Baring Asset Management's specialist wealth management arm.
Baring Private Clients’ (BPC) latest research suggests only 40% of a growth portfolio should be invested in the UK, with 5% in the US and 5% in Europe. BPC recommends 10% be invested in Japan, 10% in Asia, 10% in emerging markets and 20% in specialist funds like mining, insurance or technology funds.
“Investors who are tolerant of higher risk and don’t need to draw down for at least ten years don’t realise how aggressive they can or need to be in order to get above average capital growth,” said Baring Asset Management director of private client business, Guy Davies.
“Nor are many British investors aware of just how much needs to be invested outside of the West. Moreover, investors who require capital growth and have a tolerance for higher risk should be about 60% invested in medium risk equity funds, with the balance invested in high risk equity funds.”
Wealthy UK investors were beginning to value the multi-manager approach when investing for growth, Davies added.
BPC offers a managed funds service based on the multi-manager fund of funds concept.
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UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
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