The Jupiter Merlin Growth fund has cut its holding in cash from 11 per cent to less than 1 per cent after piling into developed market equities.
According to FE Analytics, the Merlin team increased its exposure to UK, Europe and US equities.
The team increased its UK exposure from 29 per cent to 34 per cent between the end of August and the end of September. It increased its North America exposure from 21 per cent to 24 per cent during the same period.
There was a significant rise in European exposure, up from 2 per cent to 7 per cent, while exposure to the international and Pacific Basin equities regions were also beefed up.
The latest fact sheet commentary says: “The most important decision we have made in recent weeks is that we have decided not to fight the Fed; Ben Bernanke has shown us his hand.
“His plan is to do all he can to make people feel wealthier through improving asset prices. His mission is to get US house prices and the stock market up and in so doing he hopes to create the feel good factor that will make people more willing to go out and provide demand.
“At some point the Fed will have to withdraw liquidity and remove the punchbowl, but there is no sign of this happening until 2015 at the earliest.
“We have therefore reduced cash to low levels and increased our exposure to equities and corporate and emerging market bonds where appropriate. When the facts change we will endeavour to change our minds in a timely fashion.”