Managers grapple with Covid-19 disruption
Markets have been fluctuating this week, down sharply on Monday before rebounding overnight for Tuesday. The OECD has warned that Covid-19 is the biggest threat to the global economy since the GFC.
Milford Asset Management portfolio manager Mark Riggall said it had already reduced its exposure to the market when the first signs of coronavirus concern surfaced and had pulled back from single stock investments in at-risk sectors, such as airlines and airports.
He said that had enabled it to get ahead of the market turbulence. It had cut its exposure to risky assets by as much as 30% in some funds. “This is the right time to be with active management … it’s extremely volatile.”
Frank Jasper, at Fisher Funds, said it had gone into the coronavirus volatility owning fewer shares than it normally would, too. When the outbreak became more serious, it added to its international bond portfolios, which had since had a capital gain lift.
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