Alliance moves defensive on latest launch

Alliance Trust's Rod Davidson has launched his new Monthly Income Bond fund with the credit allocation in defensive names.

The manager says he wants to minimise volatility and ensure a steady income for the fund, which is targeting a yield of 6.3%. "We have taken quite a conservative approach, buying utilities and telcos - companies that are cash-rich and have strong balance sheets," he says. "Our central thesis is there will be subdued but positive growth. "We are staying away from high yield, we do not really see any attraction there at the moment and we expect volatility to remain in that market. "We will look at other opportunities when they arise, but we are really looking to deliver a good lev...