Cheeseman looks to reduce bond volatility on F&C

F&C's Dean Cheeseman has added M&G Strategic Bond across his multi-manager range in a bid to diversi...

F&C's Dean Cheeseman has added M&G Strategic Bond across his multi-manager range in a bid to diversify credit exposure and reduce volatility. The multi-manager head expressed concerns about the amount of banking credit exposure within his funds, with several fund holdings pursuing this theme. "We have become concerned about how much of our existing bond managers are focusing on the same trade," he said. "These funds have a heavy bias to banking credits given the strong yields available post the sub-prime crisis, which adds volatility to our portfolios." To diversify credit exposure,...