Beagles increases JOHCM UK Equity Income's weighting in domestic insurers as valuations fall

J O Hambro Capital Management's Clive Beagles has increased his exposure to domestic life insurers, which he believes have been ignored by the market since Prudential announced its doomed AIA deal.

Beagles, who co-manages the £386m JOHCM UK Equity Income fund with James Lowen, opened a 5% overweight in life insurers after they fell in 
value following the Prudential rights issue. Beagles says while Prudential is attempting to expand into the Asian market, insurers such as Aviva, Legal & General and Standard Life are instead reducing the amount of new business they write and are refocusing on cashflow. As a result, Beagles and Lowen have built up a 2.8% weighting in Aviva, 2.5% in Standard Life and 2.2% in Legal & General. “It is these more domestically-orientated insurers whi...