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Eden doubles exposure to UK equities

Eden Financial multi-asset fund manager Mark Harris is doubling his fund’s exposure to UK equities, citing the sector as an attractive value opportunity as the economy improves

Eden Financial head of multi-asset Mark Harris is doubling the exposure to UK equities in the £64m Eden Global Multi-Strategy fund, citing them as an attractive value opportunity as the economy improves.

Harris is upping the fund’s exposure from 8 to 16 per cent.

He has added a large-cap fund to the portfolio alongside the £149m Cazenove UK Smaller Companies fund, managed by Paul Marriage. Harris does not want to name the large-cap fund while he continues to add to the position.

He says the bad news in the markets has been priced heavily into UK equities.

He says: “While the UK is affected by all the events in Europe, it is cheap on an historic basis. The outlook for certain stocks is quite promising. Certain companies have got good cash balances.”

Harris adds that buying UK equities means you are buying in sterling, which gives you the advantage of having control over currency.

He says there has also been signs of improvement in fundamental economic data.

He says: “Employment figures look good if you consider them against the GDP numbers. They do not tally up against each other.”

Harris also added a 6 per cent gold exposure through purchasing an exchange-traded fund and gold shares.

Harris says: “We think the gold price can go a lot higher from here. With negative real interest rates and easing policies in emerging markets, the gold price is going to be well supported when there are a lot of things to worry about, like currency weakness.”

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