Sweeney, manager of the firm’s Multi-Asset Active range of six funds, wants more optimistic rhetoric from the UK government and for it to focus more on fiscal policy-making in order to boost growth and alter the cost-cutting mind-set of UK firms.
While the market still has some way to go, Sweeney said 10 years of quantitative easing had “not really worked” to boost the economy and that an eventual slowdown in growth will see markets pull back.
He said QE had prevented the system from going under but had also “artificially lowered” the returns available on assets.
With yields low across assets and markets looking stretched, Sweeney revealed he had moved his average cash exposure up to 5% and had begun to move from cyclical sectors into more income-oriented areas.
In a slightly contrarian stance, he has moved to a moderate underweight in the US due to faltering confidence in the ability of president Donald Trump to deliver on his promises.
He also spoke of the importance of diversification and revealed he had opted for investment trusts with a bit of a difference to offer a stronger income.
“For me it’s about trying to understand the risk behind that kind of investment.
“We want exposure to something that provided income and is a bit like a bond,” he said.
