Twelve Capital continues to see opportunities for more nimble mandates within the volatile equity markets

Whilst there have been plenty of headlines in 2016 debating nervousness around the equity asset class, Twelve Capital has continued to see compelling opportunities within one of its specialist areas of focus – insurance stocks. Reflecting on the first half of the year, Dani Grieger, Head of Investment Strategies at Twelve Capital, noted “the strong performance of our global equity allocations over the last few months reflects our conviction that the insurance sector offers investors attractive opportunities within today’s volatile markets.”

On 29 July, the FT noted that “the sprint out of European equity funds entered its 25th consecutive week, draining portfolios of $76bn since the year began”. Yet William Hardcastle, Equity Analyst at Twelve Capital, explained why these conditions can be beneficial to the right investment strategies: “The continued outflow is likely to be creating greater dislocations in prices. The added volatility, whilst negative for trackers, creates opportunities for more nimble mandates. Moreover, the insatiable hunt for yield in other asset classes has only intensified the value of an attractive and robust dividend yield – something that the insurance sector has long delivered.”

Friday, 29 July 2016