Architas hands mandates to Majedie and TT International

Architas is increasing exposure to UK stocks across its multi-manager range, awarding mandates to Majedie Investments and TT International.

The multi-manager arm of AXA has allocated 17% to TT International and 20% to Majedie in its UK Equity portfolio.

Its Diversified Share fund has 6.8% weighted to TT International and 8% to Majedie.

Architas fund manager Sheldon MacDonald says: "We believe our decision to allocate to Majedie and TT International will increase our potential to deliver attractive risk-adjusted returns in various market conditions."

The firm's CIO Caspar Rock says although UK economic growth is expected to be relatively sluggish this year, companies are still in good shape.

"The Q4 earnings season has delivered reasonable results, as well as upbeat forecasts, despite a disappointing UK Q4 GDP figure.

"As such, we remain positive on the prospects of UK companies and believe progress will be made over the course of the year - albeit in a volatile fashion."

He says an expected increase in corporate spending, healthy balance sheets and low payout ratios should favour UK equities.

"A bottom-up stockpicking approach is vital in this uncertain environment, however. We favour those managers who focus on quality companies that are able to grow their cashflows," he adds.