Let the dust settle – Davies
“I switched all of the fund’s cash into dollars on the morning of the referendum looking to provide some cushion against an unexpected Leave decision,” said Steve Davies, fund manager of the Jupiter Growth Fund. “The fund holds some $115m in cash as well as an additional 9% of its assets in four companies listed in the US and Germany to provide additional mitigation against the fall in sterling.”
“The Jupiter UK Growth Fund’s holdings in UK banks still have plenty of self-help opportunities and remain very cheap by global standards in my view, but they will certainly take a hit if the UK economy turns down from here,” he admitted.
“With that in mind, I will see where the dust settles over the next few days before deciding whether to reduce the fund’s weightings in affected areas and reallocate capital to stocks with more of a global bias.”
Look for dividend yield opportunities in the short-term – Smit
Head of Stonehage Fleming Equity Management, Gerrit Smit, said his investment philosophy of buying businesses which provide sustainable dividend growth and long-term returns to investors has served him in good stead and will continue to protect the fund from post-Brexit volatility.
“In the short term, good businesses are now a little cheaper than they were, and have higher dividend yields, and we will be looking for opportunities to add to positions we can hold with confidence for the longer term,” he said.
Increase exposure to globally diversified companies – Brazier
Simon Brazier, investment manager of the Investec UK Alpha Fund, commented that he will continue to focus on high quality companies with cash generation and cash reinvestment potential.
“In terms of sector positioning, the largest underweight is banks and we have been reducing domestic cyclicals over the last year,” Brazier remarked.
“We invest on a three to five year time horizon and we will not be making significant changes to the portfolio. A large focus of the portfolio is on globally diversified companies such as Unilever, BAT and Reckitt Benckiser who should continue to deliver growth.”
“In addition, we have been increasing exposure to overseas earnings such as Visa, ADP, Checkpoint and Verisign which have limited European revenue and GDP exposure.”
