Troy's Brooke reduces utilities on bond yield fears

Troy Trojan Income manager Francis Brooke has been reducing his fund's position in utilities to protect against the threat of rising bond yields.

Brooke has been reducing his holdings in utilities, which include stocks such as Centrica and National Grid, and increasing his weighting to Lloyds Banking Group and cash. The move follows the significant volatility seen within the bond market last month - driven by a spike in German bund yields which has continued into June. Investment Week reported earlier this week that many of Brooke's UK equity income peers are similarly concerned over how utilities will fare in such an environment. In his latest fund commentary, Brooke said he had made the changes to reduce bond sensitivity i...