PMS providers brace for volatility

Portfolio management service (PMS) providers have told clients to look at the current market rally with caution and brace for volatility. In a monthly communication, a large PMS player told its clients that it would wait for evidence of an improvement on the ground before adding large positions as the risk-reward proposition had turned unfavourable following the steep run-up in the markets. Another PMS provider told clients that they can top-up their equity exposure, but in a staggered manner as further correction could not be ruled out.