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Following a strategic asset review, manager Jason Britton moved to reduce the fund's UK exposure, along with other changes, to reflect market and economy movements likely to occur in the next 12-24 months.

Mr Britton has also rejigged the fund's US weighting from 15 to 25 per cent, while overall exposure to emerging markets was raised from 15 to 17.5 per cent.

A spokesman for T Bailey said the changes were part of the firm's usual strategic review conducted every few years, but that the fund remained sufficiently flexible to react as geopolitical, economic and market trends changed.

The spokesman added the latest moves would be likely to remain in place for three years and, although still subject to FSA approval, would be voted on by unit-holders on March 30.

Richard Martin, chief investment officer at T Bailey, said while the UK was still very important to the fund, from a global perspective it made sense to pull back slightly.

"The UK is in particularly difficult circumstances as a result of heavy government and personal indebtedness, weak balance of payments and heavy dependence in recent years on the financial services sector for growth," he said.

The flipside to this, he added, was the fund's move to increase its exposure to emerging markets, as part of an attempt to exploit the growing trend that has seen economic power transfer from the developed world to the east.