Lance and Purves raise cash position amid 'expensive' valuations

Natalie Kenway
clock

Ian Lance and Nick Purves have allowed cash to rise to 15% on the RWC Enhanced Income fund due to a lack of opportunities in the "expensive" equity market.

Although many fund managers are treating the recent dips in the market as a buying opportunity, Lance (pictured) said equities are not cheap, but the risks are still significant.  “I would love to see that cash being put to work and we have a handful of stocks that tick all of our criteria except valuation. There is no pressure for us to be fully invested. “We will buy decent businesses, but only when the stock is cheap. But every time it looks like the market is coming down, a central banker steps in and the market goes shooting back up again.” He pointed to gains in global indice...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Event Voice: Stepping out of cash into the Credit Sweet Spot

Event Voice: Stepping out of cash into the Credit Sweet Spot

Peter Marsland, Fixed Income Investment Specialist, from Aberdeen discusses the Short Dated Enhanced Income Fund at the June Fixed Income Market Focus.

Peter Marsland, Fixed Income Investment Specialist
clock 08 July 2025 • 4 min read
Investors undergo 'buyers' strike' in June sending order values to two year low

Investors undergo 'buyers' strike' in June sending order values to two year low

Middle East conflict did not deter investors

Eve Maddock-Jones
clock 08 July 2025 • 2 min read
The big questions around re-evaluating risk for the retail investment industry

The big questions around re-evaluating risk for the retail investment industry

Discussions at Global Investment Management Summit

Katrina Lloyd
clock 08 July 2025 • 8 min read
Trustpilot