Dresdner: Bias and balance
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Dresdner: Bias and balance

Dresdner Bank’s EUR medium-risk portfolio is one of six risk profiles the bank runs for high-net-worth investors looking for a balanced portfolio and accepting exposure to global markets.

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Holger Boschke, chief investment officer of Dresdner Bank Holger Boschke: increasing holdings in European stocks

Approximately 40% of the portfolio is allocated to cash and fixed income, 40% to equities and the remaining 20% to alternative asset classes. EUR medium-risk portfolios are the most popular choice for European investors. Over 2006, a diversification across regions and asset classes, and a reduction in US dollar exposure enabled Dresdner Bank’s EUR medium risk portfolio to outperform its FTSE Private Banking benchmark, the European (EUR) Medium Risk index. In equities, the firm has had global exposure but has benefited from a bias towards European markets. “Overall, we have been increasing our holdings in European stocks, while many competitors have seen outlflows in equity products. In the medium-risk portfolio we are now back in line with our strategic weight, and our favourite market is the eurozone. There is a high dividend yield on euro stocks of around 3.6%, which is almost as high as the yield on the 10-year Bund,” says Holger Boschke, chief investment officer of Dresdner Bank. “This year it has been hard to convince clients of the advantages of international diversification given the high performance of the DAX but we take a global view on equities.


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