Threadneedle chief investment officer Mark Burgess said although the global investment manager has remained overweight in equities, Threadneedle is less optimistic than it has been in the past.
Mr Burgess said in early April technology stocks came under pressure, generating a “general slide in equities due to fears that valuations were overstretched”.
“Tension between Russia and the west also undermined investor sentiment,” he said.
Mr Burgess said while equity markets rallied strongly with encouraging US data and easing geopolitical tensions, this was followed by some disappointing earnings releases in the US, deterioration in the Ukraine crisis, and new concerns over the economic outlook in China.
This weighed on risk assets in the final days of April, according to Mr Burgess.
He said although Threadneedle is underweight in Asia due to concerns over China, it is overweight in Japan as it considers valuations attractive compared with other developed markets.
Threadneedle also believes the rise in merger and acquisition activity in areas such as pharmaceuticals could support equities.
