Commenting on his current portfolio positioning, Becket said he was neither particularly optimistic nor negative on wider equity markets and on analysis thinks broad market valuations are neither compellingly cheap nor wildly optimistic.
Becket said there was no reason why some of the worst performing markets of 2011 could not maintain their recent improvement in fortunes, which is why he has maintained positions where he still sees value.
But his focus on "quality" equities has been reduced "not because I dislike the companies, their products or their ability to generate profits, but because their valuations have become too expensive and I see better opportunities elsewhere."
The best risk/reward opportunities remain in corporate credit markets, Becket said, because yields are attractive and there remains the potential for capital gains. For this reason he has increased his exposure to such assets, to tap into what he thinks will be a powerful theme to drive investment returns in the years ahead.
"This recent strategy move has been a reflection of our desire to once again decrease overall portfolio risk levels after an extremely powerful move in the last few months," Becket continued.
