RADAR backs US equities with 28.3 per cent portfolio allocation

– Total equity exposure of the Fund increased to 69.3 per cent as of end of May – 28.3 per cent allocation to US equities Barclays Capital Fund Solutions, Barclays Capital’s £4bn AUM in-house fund manager, has increased the equity exposure of its flagship Research Analysis Driven Absolute Return (RADAR) fund to 69.3 per cent of the Fund portfolio, up from 39.2 per cent as of the end of April. The allocation decision was taken on the back of the belief that the recent sell off seen across global markets was driven by fear rather than fundamentals. As part of this decision the fund has also allocated 28.3 per cent of its portfolio to US equities with the Barclays Capital Research team believing that the fiscal problems in Europe will have less impact on the US than other regions. The fund, which was launched on 17th February 2009 (sterling denominated Share Class E), is a long short macro tactical asset allocation fund designed to exceed or match global equity returns in a bull market and also outperform tactical allocation funds during bear markets. The fund, which draws on the considerable resources of Barclays Capital’s 800-strong research team for its asset allocation decisions, outperformed the S&P 500 by 3.6 per cent in May – with nearly half the volatility – taking its net return since inception to 22.1 per cent and its net one-year return to 7.3 per cent (source: Bloomberg as of 28th May 2010). Commenting Nathan Bance, Director in UK Investor Solutions at Barclays Capital said: “May was a very troubled month in the market with news such...