Citywire Interview: My Asset Allocation - Cave & Sons CEO bullish on infrastructure trusts
Andrew Cockerill, an investment manager at Northampton-based stockbroking firm Cave & Sons, remains unconvinced by talk of green shoots and a rapid economic recovery.
On this basis, he is backing defensive stocks.
Cockerill, who is chief executive at the firm, said: ‘We are still favouring defensives, particularly pharmaceuticals, telecoms and utilities, which are all offering above-average dividend yields and decent earnings visibility.’
He is also positive on investment trusts, having recently invested in 3i Infrastructure, capitalising on share price weakness following Saudi Saad Group’s decision to sell down its stake. Cockerill believes the trust looks like an ‘attractive long-term proposition’ and also has exposure to HSBC Infrastructure.
In addition, Cockerill is seeing value in the UK growth and income investment trust sector, pointing to the sector’s long track record of maintaining dividend yields.
For international exposure, Cockerill is backing Alliance Trust, Monks IT and Murray International, alongside Investec Global Free Enterprise and the Threadneedle Global Select funds.
Cockerill favours corporate bond funds over conventional gilts, having moved into the asset class nine months ago. ‘We are also interested in index-linked gilts as a longer term inflation hedge,’ he added.