Metcalfe said: "Although a labour win is widely predicted this time, these same managers have fewer concerns about any market impact overall. That said, whoever wins the election will produce some new winners and losers. Still, the critical point is that the election result will probably be less market-moving than the potential outcome of the previous one."
He added: "Our outlook is very much centred around diversification. It is worth remembering that investor returns can come in short bursts, and markets rarely rise uninterrupted.
"We feel now more than ever that holding a diverse portfolio - inclusive of cash - is essential to ensure that clients’ portfolios maintain exposure to areas of opportunity, insulate them from some of the worst market moves and have enough dry powder to take advantage of new opportunities as they arise."
Neuberger Berman's Vettise said: “On the whole, investors don’t appear to mind who wins elections, but they dislike the uncertainty and are glad to get them out of the way.
"In particular, close, hard-to-call elections tend to be followed by strong performance as uncertainty is removed – a consideration that may be relevant later in the year."
ima.jacksonobot@ft.com
