F&C’s multi-manager team has trimmed its passive exposure to the US through S&P 500 exchange-traded funds in favour of the actively managed Robeco US premium equities offering.
A 3 per cent weighting in the Robeco fund has been added to the overseas equity allocation across the F&C lifestyle and F&C multi-manager portfolios.
The Robeco fund is a Luxemburg-based Sicav managed by Boston Partners, one of three US institutional managers that make up Robeco Investment Management. It invests in US companies of any size and follows a bottom-up approach to find the best value. It aims to deliver growth in rising markets, while preserving capital in falling markets.
F&C fund manager Paul Carne says F&C has used passive investments for US equity exposure because active managers in the region often face difficulties in delivering consistent performance. But the F&C multi-manager team believes Boston Partners could drive the Robeco fund to produce better returns than the index.
The team also has a more upbeat outlook for the US and its equity markets, which fits well with smaller and medium-sized company exposure the Robeco fund provides.