Matthews drops Buxton's 'problem' cyclicals

clock • 2 min read

Philip Matthews has turned over almost half the holdings in the Schroder UK Alpha Plus fund since taking over the fund from Richard Buxton in October, IFAonline sister title Investment Week can reveal.

In his first interview since joining Schroders, Matthews revealed he has sold around 40% of the portfolio, diversifying away from the domestically-exposed cyclicals long favoured by his predecessor to focus on different sectors. "That was one of the things I felt was a problem when I took the fund over: it had Whitbread, IAG, Debenhams, Home Retail, Ladbrokes, Taylor Wimpey, Barclays, RBS, and Lloyds, which are all exposed to an improving domestic consumer," Matthews said. "We are moving into ideas like media, tobacco, and pharmaceuticals, where we think there is a better risk-reward ...

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