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by Nisha Long on Jun 20, 2013 at 00:01
Schroder Income's Nick Kirrage says it is still too early to buy back into miners, but he is finding attractive value plays in the beaten up US tech and defence sectors.
Kirrage acknowledges that it is becoming harder to find good income sources within the UK and is currently selling selective fund positions to lock in gains.
Kirrage and co-manager Kevin Murphy focus on more than just the current dividend a company is paying and are inclined to avoid the very highest paying divided payers if they don’t believe in their long term fundamentals.
Kirrage told Citywire Selection: ‘We would rather sell positions and let cash go up which has been a drag on the portfolio for the last six months but [over] the long term this works for us’.
Finding limited opportunities in the UK has made the pair look for opportunities outside the UK in the search for better income potential and the pair are currently 15% invested overseas with a strong focus on US tech stocks.
Within the last six months they have bought Dell and Hewlett Packard on the back of news of the takeover bid made by Dell.
Displaying their long held contrarian deep value approach, they have initiated a position in SAIC, the American defence company.
He admits that a market sentiment towards these types of company is quite poor and that many in the defence sectors had been sold down over anticipated cuts in government defence spending.
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