View more on these topics

High valuations see Troy Spectrum boost cash

Troy Asset Management’s Sebastian Lyon and Francis Brooke have reduced long-standing holdings in their £85.9m Spectrum fund and recycled proceeds into cash.

Positions in the Ruffer European fund, one of the portfolio’s largest investments, and the Polar Capital Global Insurance fund were brought down during November.

Cash in the portfolio has been boosted by the sale of these holdings, with cash levels now standing at over 23 per cent including cash controlled by underlying managers.

In their latest update, the managers say: “Ruffer European is an eclectic mix of smaller companies whose profitability is divorced from the diktats of central bankers.

“By contrast, however, their valuations are now stretched by more positive stock market sentiment, and so we have prudently reduced our holding.”

The update adds a similar increase in valuations within the insurance sector prompted a reduction in the Polar Capital Global Insurance fund.

It says: “Like Ruffer European, this is an unusual fund whose investible universe of companies no longer has the discount that first attracted us.

“The balance between risk and reward is no longer so clear after a 55 per cent return in two years.”

Whitechurch Securities head of research Ben Willis says: “There are a number of managers who do not see lots of value in the market.

“There is also still a lot of uncertainty around tapering this month and although I think it is unlikely this will happen, I can see why this might make managers hold cash.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm