SVM has diluted the defensive elements of all three of its unit trusts and pushed the vehicles' hold...
SVM has diluted the defensive elements of all three of its unit trusts and pushed the vehicles' holdings into higher beta stocks.
The three portfolios, UK 100 Select, UK Opportunities and Continental Europe, racked up their three-year track records in March and have traditionally been focused on defensive holdings.
The managers are now favouring more aggressive growth areas, according to Mark Noble, head of UK sales at SVM.
He said: 'Over the past few months, the funds have been moving into other sectors where they have not been for a while. We have not gone from a bearish to an outright bullish stance but we are more optimistic.
'We are trying to replicate themes across the portfolios. A driving area is merger and acquisition activity, which is on the increase. We want to be exposed to companies that are susceptible to this.'
Andrew Kelly, manager of SVM's £2.5m UK 100 Select fund, has sold out of some holdings such as AB Foods and trimmed exposure to oil and financial companies like Northern Rock and Alliance & Leicester.
He has replaced them with insurance stocks such as Aviva, Amvescap and Schroders, which he anticipates will perform strongly during a market recovery. Noble said: 'The fund has also added Yell, even though it is not in the FTSE 100. It is due to enter the index sometime in September.'
Merger and acquisition activity is also guiding the tactical plays in David Stevenson's UK Opportunities fund, as well as Paul Casson's Continental Europe portfolio.
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