Thames River has introduced fixed interest exposure into the £108m Thames River Equity Managed fund for the first time.
The fund took a 3.68 per cent position in the £816m Old Mutual Global Strategic Bond, managed by Stewart Cowley, in August.
This is the first time Thames River has introduced fixed interest exposure into the fund, which was previously completely invested in equities. The fund sits in the IMA Flexible Investment sector, previously the Active Managed sector.
Thames River co-head of multi-manager Robert Burdett says: “Cowley is very tactical and he reacts well to markets and communicates his views very well. He uses duration to control fixed income risks and his currency views have been good. It is a good one size fits all bond.”
Burdett says he may add more fixed interest exposure to the fund, but he favours equities.
He says: ” We want to be overweight equities. We are aware that markets have run quite hard over the last few months. So it may be wrong to dilute equity exposure in the medium-term, but over the shorter-term it may be a good idea.”
Hargreaves Lansdown investment analyst Richard Troue says: “Multi-managers do have the flexibility to invest in different asset classes. Perhaps, as a hedge against volatility in the stock market, government bonds could be a good short-term investment while Europe’s problems are not solved.”