Jupiter fund manager Guy de Blonay has raised Asia exposure within the £1.4bn financial opportunities portfolio to almost 30 per cent.
De Blonay, who took on co-management of the financial opps fund with Philip Gibbs in June, says the firm took money out of the US and lowered the cash weighting to increase Far East exposure.
He says sovereign risk is a major concern and that investors have to be careful to avoid countries needing severe austerity packages, hence his focus on Asia. Earlier this year, the financials team cut exposure to Europe from 20 per cent to under 10 per cent.
De Blonay includes HSBC and Standard Chartered banks in the Far East portfolio as that the majority of their earnings come from Asia.
He says: “You need to focus on areas that are creating jobs, such as Asia. When you look at Asia, you can see the revaluation of that part of the world is clearly a likely scenario for the long term. It is somewhere we are likely to be focusing on more in the future.”
De Blonay says the team cut US exposure to below 20 per cent and is holding off adding to it at the moment.
He says: “We believe the macro environment is not improving as fast as we thought and we need confirmation on the sustainability of the housing market and job creation.”