Julien Moutier

“The equity markets had a bumpy ride in December, as trading volumes fell sharply towards the end of the month. Volatility eased during the final weeks of the year, to end at its lowest level since early August. Investors reacted mainly to news on the crisis in the eurozone and seemed to attach little importance to the encouraging economic data published in the US. We have increased our exposure to equities (Franklin Mutual Beacon) and high yield bonds (AXA WF US High Yield) in this area. At the same time, we reduced our cash allocation, slightly increasing the overall risk of our portfolio.”