Marlborough UK Leading Cos ups small-cap exposure to 2007 level

The manager of the £41m Marlborough UK Leading Companies fund has taken small-cap exposure to its highest level since 2007, attracted by growth prospects and exposure to emerging markets.

Richard Hallett has upped the AIM, small and mid-cap stock weighting to 40% of the portfolio, with FTSE 100 holdings scaled back to 60% from the fund’s most defensive position in early 2009, when it was 75% blue chips. The focus is on companies whose earnings come from overseas, particularly Asian and BRIC markets. “This has not been an overnight move. It has been a gradual process of rotating out of larger more mature companies and steadily replacing them with younger companies with more scope for growth,” he said. “Over time, the risk of double-dip recession has receded. Growth, ...