Conte has rotated the trust’s asset allocation towards a significant overweight in industrials and engineering amid what he sees as a trickle of positive numbers that signify a strong global recovery.
Unloved in the depths of the crisis and subsequent recession, the likes of agriculture and mining “for the first time in a few years are seeing a recovery”, according to Conte who has allocated 26% of the trust to the industrial and engineering sector.
The current recovery comes after a prolonged downturn for the sector.
Conte said: “There are parallels to be drawn with the recovery we saw 2009 where the market correctly anticipated an upturn in the order cycle, as early as quarter one of 2009 even though orders only picked much later that year.
“After a prolonged downturn the first quarter of 2017, for many companies, signaled a bottom in the order cycle however orders are expected to recover into the second and this quarters later this year.”
Solid earnings growth, an uptick in orders for companies providing oil services, machinery and cement plans and “benign” results of the Dutch and French elections have all added to Conte’s bullish stance.
However, he added that while luxury consumer goods also seem to be performing well, he is underweight in the high street mainstream retailers who he believes are still under immense pressure.
The trust is also underweight on real estate and pharmaceuticals, which are “expensive for what they are”, Conte said.
