Jupiter Income manager Anthony Nutt believes defensive weightings in cash are pointless as bonds and...
Jupiter Income manager Anthony Nutt believes defensive weightings in cash are pointless as bonds and equities are offering much more attractive yields.
Nutt currently has uncommitted cash of around £110m in the £1.541bn fund following cash bids for some of the portfolio's property holdings but he expects to invest it soon.
'Throughout the course of this year and beyond, certainly if rates come down further, institutional investors will be taking the view that cash isn't a very attractive asset,' he said.
Nutt is running long on stocks that reflect strong consumer spending and low interest rates, with around 10% in building-related stocks, slightly less in property and around 20% in financials.
He said opportunities for equity income managers are increasing as market falls dramatically lift yields, while a scarcity of capital investment opportunities is seeing firms return funds to shareholders via dividends and buybacks.
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