An extra 235,000 jobs were created in February according to the latest from the US Bureau of Labor Statistics, but some managers continue to view US markets as expensive.
The numbers smashed predictions of a 190,000 increase in job numbers while the previous figure for January was revised up to 238,000 from 227,000.
The news follows reports of rising business confidence and the release of Morningstar data showing higher fund flows into the US, but UK managers have outlined their continued cautious and long-term approach to US equities.
Dan Kemp, chief investment officer at Morningstar, said: “If you look at really what’s going on in the markets the latest job numbers clearly indicate there is economic strength and that companies are hiring and that is great news for US workers, but so much good news has already been priced in that you would need to keep having a surprise string of good news to change those prices.
“US equities do not offer good value for investors in either absolute return or relative strategies.
“We expect to continue reducing our US equity exposure unless prices fall or we change our fundamental view.
“They key message to investors is not to look at the short-term news flow but to look at what is already expected in the pricing.”
John Husselbee, head of multi-asset at Liontrust, confirmed the jobs figures would not change his stance on the US, where he is underweight in large caps but overweight in small-cap equities.
