Miton's Gervais Williams has rotated his £1.2bn UK Multi Cap Income fund, selling out of consumer stocks and moving into energy and materials to take advantage of more sustainable dividends.
The exposure to consumer discretionary stocks in the fund has reduced from 15.7% a year ago to 8.8%, reflecting Williams' uncertain outlook on the sector.
Disposals included pub group Greene King, TV production company ITV Group and housebuilder Taylor Wimpey.
Williams said: "A number of consumer stocks were sold completely and the capital raised from the sale of our existing holdings has been reallocated to a number of companies where we believe the scope for dividend growth is better.
The UK consumer has pulled back and this could last for some time, while there has been a devaluation of the pound, the rising oil price is hitting consumers at the petrol pump and the savings ratio could go up."
This theme has also been implemented in the manager's £394m Diverse Income trust where the exposure to consumer discretionary stocks has declined from 16.9% in early 2017 to 10.2%.
Instead, the manager is rotating into energy and materials stocks including gold mining companies and oil firms.
His open-ended fund has 13.6% in materials, up from 6.7% at the end of 2016, and 11.2% in energy, up from 5.7%.
New holdings include Diversified Gas and Oil, Savannah Petroleum, Royal Dutch Shell and Rio Tinto, the weightings of which range between 1.1% and 1.3%.
According to the latest Dividend Monitor from Link Asset Services, almost a quarter of the total dividends in Q1 2018 were paid by Royal Dutch Shell and BP.
Meanwhile, miners saw a 66% year-on-year rise in their dividend payments in the first quarter, while the oil price has begun rising towards $100 per barrel again after years of decline, with the price of crude currently around $76 per barrel.
Williams said: "These companies have been out of fashion, have sustainable dividends and the outlook is less correlated with world growth. Our sector view also reflects the sustainability of dividends following commodity price recovery and actions taken by the companies to constrain capex."
The LF Miton UK Multi Cap Income fund has returned 9.1% over one year to 13 June, according to FE, versus returns of 5.5% by the Investment Association's UK Equity Income sector.