The team came out of the £763m Cazenove European fund managed by Chris Rice and inv-ested the money in the Barclays BlackRock iShare S&P500, citing a preference for the US in the current market conditions.
Co-head of multi-manager Duce says the team was already underweight in Europe but has chosen to make a further cut in its exposure.
He says: “We have seen a bit of a respite in markets but we are still cautious and, if the market retreats, we feel that the US will do better than
Europe, which tends to happen when risk appetite wanes. The corporate earnings’ numbers coming out of the US have also been better than those in Europe.”
Duce says currency was a secondary factor in the move.
He says: “That trend of being long in the dollar and short in the euro is going to be here for some time.”