The manager of the £269m JPMorgan American Investment Trust has begun increasing the level of risk in the portfolio for the first time in two years.
Garrett Fish had actively decreased the trust’s risk exposure but is now moving away from his defensive stance to capitalise on the opportunities he sees in the equity market.
Fish says economic activity, consumer confidence and the housing market are close to their all-time lows. Although he cannot predict the timing, the manager expects to see a recovery in the stockmarkets which could be dramatic, and has positioned the fund accordingly.
He has made significant changes to the portfolio’s sector allocation, increasing the weighting to financials and going overweight consumer discretionary stocks.
He remains overweight technology and has also maintained his position in large caps, as he says they have generated the best relative outperformance.
Fish has increased the trust’s gearing to 113% to enable him to further increase his market exposure, although this does not increase the risk in the portfolio, he says.
US tech is apple of manager’s eye