Luthman ups weighting within 'undervalued' large-cap space

Jan Luthman, co-fund manager of the £156m Walker Crips Equity Income fund, has built up an 80% position in FTSE 100 stocks, believing the area is undervalued.

Luthman said over the past decade a host of major pension funds have dumped UK shares in favour of bonds and gilts in the view equities are too volatile. The manager also believes there are better growth prospects internationally, so is holding FTSE 100 names as a large proportion of these companies’ earnings come from overseas. “Over the past 10 years, there has been a process of de-equitisation, whereby major pension funds have been selling UK shares and buying bonds and gilts instead,” explained Luthman. “Most companies have ended their defined pension benefit schemes and switch...