Whitechurch Securities has cut its holding in UK long-only growth equities to zero for the first time within discretionary client portfolios.
The firm took this view in the middle of January when the FTSE 100 hit 5,500 and says the Schr-oders alpha plus fund was the last fund it held.
Senior analyst Ben Seager-Scott says the firm is not completely shunning the UK but says it faces serious headwinds and is tipping UK equity income funds to outperform. He says: “From March 2009, it was all about the beta and being in the market. We think that has come to end and in the UK we are instead looking to stockpickers that can extract value from a market that we think is going to trade sideways within a range.
“This year, we think the FTSE will be flat trading between a range or there might be a correction of up to 10-20 per cent. If there is a correction, it is going to be big defensive companies that will outperform.”