The Aberdeen multi-manager team has moved overweight into high yield within its £800m retail fund range
The team now has a 4 per cent position in the Aegon high-yield bond fund across its range and has topped up its position in the Legal & General dynamic bond fund to 6 per cent after the fund moved overweight high yield.
The team has reduced its exposure to BlueBay investment grade but multi-manager fund manager Scott Spencer says it is still its preferred holding in that area. He says: “After our review of the fixed-income range, we feel high yield is the best option, given the current macro backdrop. With default rates likely to remain low this year, high yield looks an attractive option, particularly with the lower duration period compared with government or investment-grade.”
Spencer says the team has moved to a more flexible approach on government-grade bonds, having built its exposure in the Julius Baer absolute return bond and the Thames River global bond fund. The firm also introduced a 4 per cent holding in the M&G inflation-linked bond fund.