TwentyFour managers plan 'opportunistic' play on US high yield

Steering clear of energy sector

TwentyFour Asset Management is looking to add an "opportunistic" position in US high yield to its Dynamic Bond and Global Unconstrained funds.

The £1.4bn Dynamic Bond fund currently has 0.6% allocated to US high yield, but its managers intend to increase this level to 5%. Meanwhile, the Global Unconstrained fund, launched in December, currently has 2.7% invested in the asset class, which the team hopes to build to 10%. US high yield bonds were pummelled in the second half of last year as concerns over defaults in the energy sector, jitters over impending interest rate rises and liquidity fears prompted a rush for the exit. The situation was exacerbated in December when US firm Third Avenue Management imposed a freeze on with...