Katherine Garrett-Cox, the chief executive and chief investment officer, has taken the cash position on the 2.2 billion investment trust down to 4.7% from 10.5%.
In its latest quarterly report, the group says that despite maintaining a defensive stance, it takes the view that less defensive stocks saw the strongest rally.
The trust is now invested more towards the early cyclical areas of the marketwhere the manager sees the best valuewith the largest overweight positions in the tobacco, support services, and oil and gas sectors.
It remains underweight in banks, general financials, and technology.
Over the quarter to April 30, the vehicles net asset value (NAV) including income rose 2.5% against a rise of 2.3% in the FTSE 100, according to the group.
Looking to the prospect of economic recovery, Garrett-Cox says she expects growth to remain weak throughout this year, with early signs of improvement unlikely until 2010. She describes the groups outlook as cautiously optimistic in the medium-term.