A former portfolio manager writing in the Financial Times has disclosed returning to equities after a month-long blackout period, executing six buy orders on March 24 following his move to 100 per cent cash last October.

The new portfolio allocates 30 per cent to UK equities (VUKG), 20 per cent to Asia (CEA1), 10 per cent each to US (VUAG), Japan (VJPB), and Latin America (BRLA), with the remaining 20 per cent in UK government bonds (TR34). The gilt position targets a 4.5 per cent yield the author deemed too attractive to ignore after bonds were oversold.

The strategy reflects several convictions: US valuations have normalized to 10-year averages, Latin American markets benefit from a weaker dollar and falling US rates, and UK equities offer compelling valuations with heavy energy exposure. The author notes the Bank of England recently said it "expects there will be an adjustment at some point" regarding equities — but argues the timing feels right for full investment given improving earnings forecasts.