To avoid liquidity becoming a problem in the £422m portfolio, he has increased the number of holdings to 94 compared with about 70 it held two years ago.However, speaking at conference of intermediaries last week, Luckraft (pictured) said he is not building a tail of smaller holdings. Instead, he plans to increase the number of stocks slowly as the fund continues to grow in assets. As a result of his particularly bearish view on the property sector, Luckraft told fund strategists that in his view the recent rises in interest rates may have peaked. “If the property market does slow quickly, it will impact on consumer spending and we could actually see rates falling again next year. “A lot of property investors have made cash too quickly and there could be a danger of property surging back in the market. If this happens, we could find a series of investors are not actually making any money, and this could slow the sector.” Looking at the market globally, Luckraft says the danger of earnings downgrades in America is an area he is watching closely. “While the US is undergoing a period of strong corporate cashflows, this is not leading to a pick-up in corporate expenditure and they are not hiring.” Since Luckraft took over the fund in September 2002, it has risen 54.54% on a bid-to-bid basis, against an average for the UK Equity Income sector of 26.93%.