Liontrust's Milburn and Roberts triple high yield exposure on Strategic Bond fund

Net 30% weighting

Phil Milburn and David Roberts, co-managers of the £162m Liontrust Strategic Bond fund, have increased their exposure to high yield for the first time since the fund's launch in May 2018.

The duo have increased their exposure from net 10% of the fund to a net 30% weighting with 20% in physical holdings and the remaining 10% using derivative overlays. The fund has a maximum 40% weighting to high yield as any more the risk of the asset class "would start to dominate the fund". The investment will go into US high yield through the Markit CDX High Yield index, which is made up of 100 equally weighted securities, and is a tactical allocation over the next few months. In particular, Milburn prefers BB and B high yield credit while avoiding "the levered returns of CCCs". ...