Garry Laurence

Perpetual’s Global Share Fund has increased its exposure to technology and healthcare companies over the past 12 months while reducing its holdings in more cyclical industries such as industrials.

The move comes as sectors that have benefitted from the ultra-low interest rate environment face the prospect of increased rates in the near future.

Portfolio Manager Garry Laurence said: “We still own a number of quality businesses in cyclical sectors like industrials, but given the late part of the cycle that we are in, it’s prudent to reduce this exposure and ensure we continue to outperform in falling markets.

“Past performance is no indication of future performance, and I don’t expect sectors and asset classes to perform the same way they did over the past five years in the next five years,” said Mr Laurence.

The fund is now 25% invested in the tech sector, with expectations it will continue to perform well and disrupt traditional industries.

“We have done well investing in technology companies since the inception of the fund. We will continue to apply the same rigorous investment process that has served Perpetual well time and time again in a bid to find high quality companies at fair valuations.”

The fund has also increased its cash allocation to 18%, up from a five-and-a-half year average of about 10%. The increased level of cash reflects concerns about elevated valuations in certain sectors and regions.
“I don’t think volatility in equity markets has disappeared. There are a number of macro-economic factors still to be played out over the coming months that will no doubt create a stir in the market.

“Volatility can distort valuations, and building up our cash position allows us to invest in the right companies at the right time,” said Mr Laurence

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