McQuaker turns to cyclicals as defensives become 'vulnerable'

Bill McQuaker, head of Henderson's multi-manager team, has moved into more cyclical equities in the view outperforming defensives now look vulnerable to a correction.

McQuaker (pictured) said he began introducing global cyclical exposure to the £256m Henderson Diversified Growth fund because consensual positions had become overvalued in recent months. He said: "We have introduced more cyclicality into the equities portfolio. We have bought the Hermes Asia Pacific ex-Japan fund as it is more cyclical than its peers. We have also added to Europe and to global emerging markets for the same reason." He has also built up an 8.7% position in cash to maintain a liquidity buffer. He said: "Equities have seen enormous performance build-up in the last few...