The manager bought three industrial stocks and one insurer in September as ECB president Mario Draghi announced the outright monetary transaction programme to hold down high sovereign borrowing costs and restore confidence in the euro.
During the month, the fund invested in Netherlands-based engineering consultancy Arcadis, French industrial mineral firm Imerys and German automotive and defence business Rheinmetall.
“Increased market confidence and a more benign environment have the potential to lead to a recovery in more economically-sensitive areas such as industrials, particularly among firms which operate in the core and enjoy exposure to relatively robust demand from the US and the emerging markets,” the manager explained.
Williams also added a holding in Swiss insurance company Baloise to the portfolio. He commented: “The financials sector should also benefit from the recent policy moves.
“This is particularly the case in Switzerland, where well-capitalised banks and insurers such as Baloise enjoy exposure to a resilient domestic economy despite valuations declining with the rest of Europe.”
Financials is the fund’s largest sector allocation, accounting for 19.1% of the portfolio, while industrials are the third biggest sector play at 15.4%.
