MyFolio is being positioned to benefit from a reflationary environment which it believes should see equity risk outperform fixed income assets.
A net overweight position in equities – particularly the US and Japan – is being funded from underweight positions in UK fixed income, most notably UK corporate bonds.
The team, led by head of fund of funds Bambos Hambi, has already sold out of government bonds, both tactically and strategically amid diminishing yields.
Brown Advisory US Small Cap Blend has been added to the mix on the belief that domestically oriented stocks could benefit from the tailwind of Trump policy.
The fund has a 50/50 allocation to two strategies, a growth portfolio managed by Christopher Berrier, and a value bucket from David Schuster.
“Each portfolio is attractive in its own right, both remaining faithful to their individual style, having had consistent management for more than five years and a disciplined philosophy and process,” says Hambi.
“This discipline means they combine to give a blend without significant style bias. Investment in the fund gives access to two strong managers, who have proven ability to deliver over the longer term by exploiting the opportunities available in this segment of the market.”
