"There are however, still many challenges ahead, the greatest of which is that the global economy has not rebalanced. We remain concerned that investors are taking a 'too rosy' view of the future," Cumming says.

Among these challenges he notes are: China's reliance on exports if the US cannot afford to buy them; European imbalance between France and Germany, which are officially out of recession, and the UK, which is not; ongoing weakness of sterling; and companies that are particularly reliant on domestic sales being hurt by this relative economic and currency weakness.

As a result the PSigma UK Growth portfolio has been adjusted in recent months, to include more holdings in companies deemed capable of sticking out the tough times, as well as maintaining a low exposure to earnings derived purely in the UK.

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