Evenlode Global Income fund dumps Diageo amid consumer goods rotation

Drinks giant dropped due to excessive 'valuation risk'

Evenlode Global Income has completed its exit of drinks manufacturer Diageo amid a wider trimming of the consumer goods sector, which has represented a large weighting within the portfolio since its November 2017 launch, due to excessive "valuation risk".

The exit, which is the result of several "nudges" during 2019, is a rare rotation from a relatively large position, according to managers Ben Peters and Chris Elliott, who said their process is "long-term" in nature. Evenlode plans to expand range with Global Opportunities launch Peters and Elliott said they had "disposed" of the stock, which started the year with a 2.9% weighting - the 12th largest position in the portfolio, following strong performance. "As there were other companies with better valuations available we decided to exit." Diageo's share price is up by around 15%...