Following its latest investment committee meeting, the firm has pulled out any money it had in Japan – a holding of 3% across the client portfolios – and has upped its exposure to the US and Asia with an eye on income-generating funds.
This view holds across the five investment strategies Berry AM runs.
Mark Robinson, the firm’s chief investment officer, confirmed the majority of their allocation was to Stephen Harker’s GLG Japan Core Alpha Fund that remains on their buy list.
He explained that the move is part of a broader intention to move to other non-UK equity income propositions.
In the US, this is played through Clare Hart’s JP Morgan US Equity Income Fund and the SPYDR US Dividend Aristocrats. The latter is effectively an investment in a number of companies that have paid an increased dividend for the past 25 years or more.
In Asia, he prefers the Cullen North America High Dividend Value Equity Fund and Jason Pidcock’s Newton Asian Income Fund. For the lower volatility portfolio, he is an advocate of the Schroder Asia Total Return Fund.
“We also like the theme of global brands that tap into the rising Asian consumer,” he adds, “such as the Coupland Cardiff Asian Evolution Fund that can invest in companies such as Nestlé Lanka and Colgate India.”
At the same time, Berry AM has trimmed its alternatives exposure and replaced it with index-linked bond; it has also added to its gold holdings having taken profits in the summer.
