Jacob de Tusch-Lec has been reducing the £46.7m Artemis Global Income fund’s exposure to “quality yield” and investing in cyclical and value names.
The manager is one of several who started to introduce more risk into their portfolios on the back of improved economic data at the end of 2011 and an optimistic outlook for 2012.
De Tusch-Lec trimmed his allocation to “bullet-proof” stocks over the fourth quarter and increased exposure to companies more likely to benefit from the nascent economic recovery. (article continues below)
The manager has bought back into the Irish construction company CRH, as this is a “classic stock” he invests in when he expects the economy to “surprise on the upside”.
Mining exposure was lifted to neutral against the benchmark through South Africa’s Kumba Iron Ore and the Polish copper miner KGHM.
The portfolio also owns Mitsui, a Japanese trading house, and some Asian real estate investment trusts.
“I’ve put a little bit of risk into the fund in various areas and just taken a bit out of pharma and the kind of spaces that have done well,” De Tusch-Lec says.
“It’s about repositioning the portfolio towards things that were disliked in the market.”
David Coombs, the head of multi-manager investments at Rathbone Unit Trust Management, has increased exposure to emerging markets to capitalise on cheap valuations and strengthening economic numbers.
The £7.5m Rathbone Multi Asset Enhanced Growth fund’s emerging markets allocation stands at 42% – up from 33% at the end of September and overweight to the benchmark’s 35%.
Thomas Becket, the chief investment officer of PSigma Investment Management, has also refocused his strategy after the rally, with quality equities reduced and the allocation to corporate bonds lifted in pursuit of a better risk/reward balance.