JPMorgan Asset Management’s Tony Lanning trimmed his exposure to the UK in recent weeks on the back of a strong equity market run in 2013.
Mr Lanning has been taking profits from UK equity holdings across his Fusion range of multi-manager funds, but emphasised that he still remained positive on the country’s economic recovery.
“With UK CPI [consumer prices index inflation] finally falling below the 2 per cent target, we expect it to continue to fall as lower commodity costs and the effects of a stronger pound begin to feed through,” he said. “This will provide a further boost to UK consumption and real wages should turn positive after four years of negative real growth.”
He holds positions in funds geared to the “domestic recovery theme”, including the Aberforth UK Smaller Companies fund.
Elsewhere, he highlighted “healthy” manufacturing data from the US as “comforting” due to weakness in some economic data due to extreme weather.