Woolnough reduced the fund’s equity weighting from 3.3 per cent to 2.8 per cent after selling out of a number of financial positions such as Bank of America, Wells Fargo and Royal Bank of Scotland.
Woolnough reduced the size of positions in a number of other holdings. The fund’s duration was also reduced marginally from 3.6 years to 3.5 years.
In explanation, the fund’s monthly review reads: “With bund yields now particularly low after their recent rally, the portfolio maintains its zero duration contribution from European assets.
“Richard continues to believe that too much bad news has been priced into bund yields and prefers sterling and US dollar denominated assets, which in his view offer more value.”