Barclays Wealth is increasing its risk appetite, adding to commodities, some Asian investments and equity holdings, while maintaining exposure to corporate debt, taking the view that more evidence is building that economic activity has bottomed out.

The UK firm said its investment calls include increasing “portfolio risk levels to strategic norms”, which it said would, in many cases, “involve increasing portfolio risk by adding to equity holdings”.

Any exposure to Asia should, it says, include an investment in Japanese stocks.  “The Japanese economy is becoming increasingly integrated into the larger, dynamic Asia story,” it said.

Aaron Gurwitz, Head of Global Investment Strategy at Barclays Wealth, said: “The great springtime global equity market rally of 2009 is now fading.  The rally had reflected growing confidence that the global economy was not headed for a recession. That process is now apparently complete. We remain optimistic for financial markets overall in the medium term, but suggest some caution for the next quarter or so.”

Barclays Wealth had total client assets of £145 billion as at 31 December 2008.