Alex Borer

“Expectations for a stabilisation of financial markets based on the policy response of Obama’s administration have been violently disappointed. The global economy and financial markets are on an accelerating downward path. The few active risk takers in the market have had a hard time across all asset classes. We reduced the equity allocation by 5 per cent (Europe and Japan) and kept the proceeds in cash. We continue to hold our significant credit exposure in fixed income high yield, emerging markets and convertibles. We believe that current credit spreads compensate fairly well for the risk taken.”