Aviva Investors' Chris Higham has slashed risk exposure in his £1.6bn Corporate Bond and £96m Strategic Bond funds, shifting 25% of the portfolio into cash on fears of a bubble forming in risk assets.
The manager has upped his cash levels in the Strategic Bond fund over the past six months from zero to roughly 10% in cash and 15% in cash equivalents, including index-linked government bonds. He has also taken risk off the table in Corporate Bond fund by increasing exposure to AAA-rated companies by 10%. “We have taken a fair amount of risk off in recent months. There are so many headwinds it does not pay to have too much risk on right now,” said Higham. “Our subdued outlook for developed markets, an influx of liquidity increasing the risk of market bubbles, and contagion risk associ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
