MFS fund cuts cash bias

The MFS Emerging Growth fund has reduced its cash weighting from 16% to 10% on the back of a bullish attitude to the US economy and to small caps. US growth looks set to continue at strength and the small cap market will be one of the biggest winners as its cycle is on the up; this small cap bull run could last for years rather than months, according to fund manager Don Pitcher. Small caps have spent many years languishing in the doldrums. Pitcher said: "In May 1996 the perception of higher interest rates entered the stock market. When people are scared they only buy the big cap blue chip...