Rathbones Unit Trust Management multi-asset manager David Coombs has rebalanced exposure to UK equities after selling a number of existing positions and adding the Axa Framlington Mid Cap fund to the £7.9m Rathbone Multi Asset Enhanced Growth Portfolio.
The fund has recently sold out of the Herald Investment Trust after a period of strong performance and the £719.5m Marlborough Special Situations fund within UK equities.
Coombs describes the move as part of a “rebalancing” of the fund’s exposure to UK equities that sees the portfolio refocus on the pockets of value available further down the market cap scale.
He says: “We have engaged in a rebalancing exercise to take profits in the UK by exiting our position in the Herald Investment Trust, which has performed very well.
“We also took profits in the Marlborough Special Situations fund.
“Broadly, we believe value is only really available further down the market cap spectrum. As such, we initiated a position in the Axa Framlington UK Mid Cap fund.”
The £68.9m Axa Framlington UK Mid Cap fund, managed by Chris St John, is favoured by Coombs for its “sensible process”.
Coombs adds: “We like the longer-term themes he is working in his portfolio, such as technology, winners on the high street and UK domestic-earners.
Investment Quorum chief executive Lee Robertson says: “Value has definitely become an issue now in large and small caps after their strong performance and there could be some overlooked opportunities in mid caps.
“But in our view everything is looking fairly toppy.
“This is not to say that 2014 will not be a good year but I cannot see it repeating the success of 2013 which was fantastic overall for equities.”