Anthony Nutt, fund manager of Jupiter Income, has cut back the number of portfolio holdings by some ...
Anthony Nutt, fund manager of Jupiter Income, has cut back the number of portfolio holdings by some 20% since taking over the unit trust in March.
He is now running 170 holdings having taken out 40 stocks and said this was because his investment style differed slightly from that of the previous manager William Littlewood.
Nutt said: "I have reduced a lot of the smaller holdings, which were trading positions as William was a more active trader than I am. It is not as if there is a new manager on this portfolio. I have worked with William for the last five years. I know why the stocks are in there so I have not had to do any radical surgery."
Since April Nutt estimated around £3m a week had been coming out of the Income fund but that this had little effect on a portfolio of £1.6bn and that these outflows had now dried up.
He said: "Redemptions have not affected how I run the fund in any way and while we have not seen the very dramatic inflows we saw earlier in the year nor have we seen any real outflows. More recently we have been getting a dribble of money in and I think that will build up although it depends on how we perform and how the opposition performs."
Jupiter Income now has around £70m in cash, which Nutt said was a normal liquidity level for a portfolio of this size.
Littlewood was well known for his holdings in US Treasuries and Nutt has now sold all of these, ploughing profits back into UK equities. Even so he is prepared to hold overseas stocks and has exposure to European equities in the High Income unit trust which he also runs.
Overall the portfolio is underweight in oils, telecoms and pharmaceuticals and among the stocks he has added since taking over are Reuters and Standard Chartered.
While Nutt sees investment opportunities in both the old and new economy sectors he believes the former are on particularly big discounts because managers have been selling out to get exposure to IT.
View from the front row
Project Libra unveiled
Including SJP and investment trusts
Spent two years at Sanlam
Will also assess FCA's actions