Causer and Read reduce risk exposure in High Yield trust

Invesco Perpetual's Paul Read and Paul Causer have cut almost 30 holdings from their £129m City Merchants High Yield trust as the managers look to reduce risk in the portfolio.

The co-heads of fixed interest made the reductions during the third quarter, reducing both bond and equity positions. "Fund activity saw a reduction in the number of portfolio holdings from 175 to 146 as we sought to reduce risk slightly," the managers say. "Several of the positions sold were new issues from the past year which were trading above par and where yields had subsequently become less attractive. "A number of other sales were in positions which had rallied strongly from their lows of early 2009, but where we felt there was limited scope for further improvement." Equit...