The newly merged F&C team has long had an underweight policy towards the US, but has broadened the scope to seek returns in Europe.
Head of fund of funds Richard Philbin believes European markets have a range of good non-geographic, stock selecting funds to choose from. The team also favours Japan and the Far East, and Philbin likes portfolios that are not restricted by geography and cap weightings.
Meanwhile, Philbin is broadly neutral in the UK and has a fairly even spread in fixed interest between investment grade and high-yield bonds, though he does have a marginal preference to-wards high yield.
F&C runs the balanced, cautious, distribution, gro-wth and investment trust multi-manager funds.
Philbin says: “There are structural problems with the US market including the impact of the weak dollar. Where we do have exposure there, it is broadly based, multi-strategy US portfolios.”