OPM Fund Management has been reducing exposure to high-yield bonds in its fixedinterest fund of funds and increasing its exposure to investment-grade bonds.
The firm is holding just under 3.5 per cent of the OPM fixed-interest fund in the JP Morgan sterling corporate bond fund as it believes this fund reflects its own views.
The fund’s manager, John Anderson, was previously head of credit at Gartmore. OPM says it knows Anderson and his investment process extremely well and regards him as a safe pair of hands.
Anderson’s fund invests for total returns, comprising growth and income, by investing mainly in high quality sterling-denominated bonds but it can also invest in bonds denominated in other currencies that are hedged back into sterling.
OPM says the fund invests in sectors it likes and that Anderson’s current underweight position in banks is appealing.