Jacob de Tusch-Lec has been introducing more risk into the £46.7m Artemis Global Income fund on the back of renewed optimism in the economic climate.
The manager has bought back into Irish construction company CRH, which recently reported a 33% increase in profit before tax for 2011, to capitalise on the improving economic picture in the US.
“I’ve held it before but this is a classic stock I buy when I think the economy [is] going to surprise on the upside,” de Tusch-Lec says.
De Tusch-Lec says he has been adding cyclical and value yield to the portfolio and reducing his exposure to quality names since the fourth quarter of 2011.
The fund’s exposure to mining has also been lifted to neutral against the MSCI All Countries World benchmark, with the portfolio owning names such as South Africa’s Kumba Iron Ore and Polish copper miner KGHM.
Canada’s Vale Mining was held for “a very short while” but sold to take profit, the manager adds.
In addition, the fund owns Japanese trading house Mitsui, which is the fund’s largest position*, and real estate investment trusts in Singapore and Asia.
Quality names in sectors such as pharma have been sold down. “In the year to date, these things have not done amazingly,” de Tusch-Lec says.
The Artemis Global Income fund has outperformed the IMA Global Equity Income sector over three months but underperformed the benchmark. Since launch in July 2010 it has returned 15.8% against the peer group’s 12.5% and the sector’s 15.2%.
* according to the latest factsheet, dated January 31