Close Brothers is sticking with the UK despite being ‘cautious’ due to Brexit and attractive valuations elsewhere.
Co-manager of the Close Managed funds, Sam Grant-Dalton , said lingering Brexit uncertainty and decent corporate profit growth elsewhere meant he has reduced his exposure to UK stocks.
But he added: ‘The UK is still our biggest allocation relative to our long-term asset allocation. We are conscious we have UK clients with sterling liabilities.’
The Close Managed Balanced fund has a 20.39% weighting to UK equity, and its top two holdings are the Liontrust Special Situations and Investec UK Alpha funds.
Grant-Dalton has held the Liontrust fund, run by Citywire AAA-rated managers Anthony Cross and Julian Fosh, since the portfolio’s inception due to its ability to ‘consistently deliver’. The fund returned 35.1% over three years to February 2018, compared to the sector average of 18.7%.