Matthews drops Buxton's 'problem' cyclicals

In his first interview since joining Schroders, Matthews revealed he has sold around 40% of the portfolio, diversifying away from the domestically-exposed cyclicals long favoured by his predecessor to focus on different sectors. "That was one of the things I felt was a problem when I took the fund over: it had Whitbread, IAG, Debenhams, Home Retail, Ladbrokes, Taylor Wimpey, Barclays, RBS, and Lloyds, which are all exposed to an improving domestic consumer," Matthews said. "We are moving into ideas like media, tobacco, and pharmaceuticals, where we think there is a better risk-reward ...