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Fly on the wall: what Dart Capital bought and sold
by Annabelle Williams on Feb 05, 2013 at 08:59
After increasing commodity exposure during 2010 and 2011, Whitehead moved to cut positions in commodity funds which had proved a drag on performance, such as the Russell Openworld Commodities Long Neutral fund. The Investec Enhanced Natural Resources fund which he topped up in 2010 has also struggled, returning 2.18% over the last three years compared to a 14.23% rise by the FTSE AW/Oil & Gas TR benchmark.
In February last year Whitehead took a position in the Fidelity Moneybuilder Income fund, a Citywire Selection pick, which is run by Ian Spreadbury and has a 4.2% yield. At the same time he took a position in Richard Woolnough’s M&G Strategic Corporate Bond fund which delivered a 14.25% return last year.
He also backs the Kames High Yield Bond fund, managed by Philip Milburn.
‘Managers have delivered roughly as expected with exceptional performance from Cazenove and Threadneedle UK Mid 250 and disappointing relative numbers from Jupiter Japan Income and our commodity exposure,’ he said.
Outlook for 2013
During the meeting the team looked at the outlook for 2013 from a number of large research houses, but ultimately agreed that the climate is too uncertain to be tweaking its asset allocation models.
‘From an asset allocation perspective we still have quite a lot of uncertainty,’ Whitehead said.
He added that he tended to agree with the growing idea that wealth managers will need to be more dynamic with asset allocation in future, given the precarious situation where investors have flocked to bonds and the risk that a bubble has formed.
‘There is this argument that asset allocators are going to have to be more flexible in their approach, not simply having the kind of structures that means you are forced into buying government bonds in particular,’ he said.
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- Smith & Williamson Short Dated Corporate Bond A
- Investec Enhanced Natural Resources I Acc Net
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- Kames High Yield Bond Acc A
- Cazenove UK Smaller Companies B Acc
- Threadneedle UK Mid 250 Inst
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