James Henderson, who runs the £836m Law Debenture investment trust plus other mandates at Janus Henderson, is increasing the level of debt on the trust to buy more UK shares.
The information is contained in the 2018 annual results, released to the stock exchange this morning (February 27).
Law Debenture is an investment trust with a legal and professional services business, which hires Mr Henderson and colleagues from Janus Henderson to run an equity portfolio.
Around 70 per cent of the capital of the trust is invested in UK equities, and the board intend to move the trust to a UK equity peer group and away from the global peer group in which it currently resides, in order to better reflect the investments it holds.
Mr Henderson said: "Economic forecasting for the UK continues to be difficult. A large unknown looms in 'Brexit' and what it means for business is unclear.
"The global economy appears to be slowing and UK productivity growth remains disappointing. The dark clouds are considered to be mounting for the UK by many commentators.
"However, the UK companies we hold are not a proxy for the UK economy; they are strong businesses with good management teams.
"They are good at what they do and provide competitive products and services; they also earn around 65 per cent of their revenues outside the UK.
"The negative sentiment towards these businesses has become extreme, which has made valuations and the dividend yield attractive.
"The intention over the next few months is to move the gearing up by buying UK stocks to take advantage of this dislocation."
He said he intends to avoid tobacco stocks, despite the high dividends, as he feels it is a 'dying industry.'
The trust announced an increase in the dividend of 9.2 per cent for the year.
david.thorpe@ft.com
