The company says it has some shorts in place in through reverse exchange traded funds and from a regional sector perspective, it favours emerging markets and the Far East at the expense of Europe.
It has also increased its fixed interest fund’s exposure to high yield bonds, which is preferred over the investment-grade market.
Fund manager Ross Henderson says: “The investment grade corporate bond market is peculiar and we have not really been in that market since the beginning of the year, which has increased the risk profile of the fund
“Things like blue chip AAA bonds are struggling as they are aligned to gilt prices, but investment-grade bond fund that were battered last year are performing better.”
He says that Old Mutual corporate bond and a couple of Aegon funds suffered because they invested in the banking sector but are now picking up.