The Swip multi-manager team has reduced the FTSE iShares exposure in its MM Diversity fund over the ...
The Swip multi-manager team has reduced the FTSE iShares exposure in its MM Diversity fund over the last few weeks on expectations the recent equity bounce will not persist through the summer.
Co-managers Simon Wood and Mark Harries have also trimmed exposure to gilts in the portfolio, in a move to increase weightings in strategic bond vehicles.
Speaking at the Cofunds Platform conference, Wood urged investors not to pile all their money into equities just yet, believing the markets could see a short-term correction.
"We purchased the FTSE ETF in March and it did do very well for us, but we have been easing it back over the past few weeks," he says. "We believe there is still some good value remaining corporate bonds."
The Swip MM Diversity fund is top quartile in the IMA Cautious Managed sector over one year to 8 June, down 6.6% against an average decline of 12%, according to Morningstar.
"We have been making a few tweaks to the portfolio, but the turnover is pretty low," he says.
"One position that has helped us is the fund of hedge funds exposure - through Brevin Howard's BH Macro investment trust.
"At one stage it got to a 20% discount, but now that has come down to 2% to 3%. We are up 6% this year and it is mostly due to the discount lowering on the IT holding."
