Discretionary manager Canaccord Genuity is rotating its portfolios away from the expensive healthcare sector and into technology.
The wealth manager said it was trimming its holdings in the Polar Capital Healthcare Opportunities fund because the healthcare market had rallied in the past year and was now looking expensive.
Justin Oliver, investment director at Canaccord Genuity, said: “With the sterling version of this fund over 40 per cent higher in the past 12 months, we believe that now is an appropriate time to take some profits on this holding.”
The manager said he was looking to recycle the money into dedicated technology funds.
He said technology stocks had lagged the general market recovery so far this year and were now looking cheap.
Mr Oliver said the sector also looked “extremely positive from a corporate perspective”, with sales and earnings growth “far superior to that of the broader market”.
The wealth manager has invested in a 50/50 blend of Henderson Global Technology and Polar Capital Global Technology.
Mr Oliver said: “Henderson Global Technology is one of the most consistent funds in the sector, having outpaced the peer group consistently in the past 10 years and delivered meaningful outperformance of the benchmark.”