Felton shifts from cyclicals to pharmaceuticals sector

Mike Felton, manager of RSA Investments' UK Prime fund, is beginning to reduce his overweight exposure to cyclicals and is increasing the fund's exposure to more traditional growth areas. In particular, Felton is increasing the portfolio's holdings in pharmaceuticals and support services, both of which are currently on small premiums to the market. With leading indicators close to peak levels and new orders in the US picking up, Felton believes now is the time to move back into traditional growth. However, he said, the market is not accepting this. The catalyst for making the broad ma...