Thesis Asset Management has increased its exposure to value-style investing across its Optima range of portfolios as the market outlook continues to improve.
The investment manager, an IFP corporate member focused on professional partnerships, had until recently concentrated on companies with strong cashflow that were paying out solid dividends, but recently has shifted to a 60-65% weighting towards value-style funds.
Steven Richards, who manages the Thesis Optima Growth and Balanced Funds in the IMA Mixed Investment sectors, said: "Five years on from the onset of the financial crisis, it is easy for people to forget how far down the tunnel to recovery we actually are, and to carry on with a defensive portfolio.
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He added: "We feel that there are currently a number of companies which have a low price-to-book value, and which are worth us investing in. Most of these companies have had to make a number of structural changes over the last three to five years, as a result of the challenging market climate and we are now starting to see the benefits of these changes."
Funds that Thesis has been investing in include the Schroders Income fund, Fidelity Special Situations and JO Hambro's (JOHCM) UK Dynamic, the latter of which Mr Richards says should benefit from having a young manager, which should ensure longevity. He feels that investors could also benefit from JOHCM UK Dynamic's dividend policy, which is not constrained like specific equity income funds.
However, despite the positive outlook, Mr Richards still believes that the market is still some way off a solid growth phase.
"We don't think we are quite at the stage where we can fully invest in cyclical companies, and we will hold off until we see stronger growth figures."