Schroders' Noffke cuts 'value trap' stocks in Income portfolio

Oil exposure reduced in latest reshuffle

Sue Noffke, head of UK equities at Schroders, sold out of BT in the Schroder Income Growth fund in January in the belief it had the potential to become a value trap.

Noffke said she had been "weeding out" positions in the trust where her "degree of confidence has ebbed". Having identified BT as one of those positions, Noffke sold out of the holding in its entirety in January this year and topped up the portfolio's position in British American Tobacco. Japan 'on the brink of recession': Contrarian play or value trap? "BT has had a period of difficulty we looked at the company in some depth in January and felt that, although the valuation was quite cheap, it had the potential to be a value trap," she said, adding "where we were not convinced abou...