Fund managers increase weightings in cyclicals

Corporate bond fund managers are upping their weightings in cyclicals in anticipation of a global ec...

Corporate bond fund managers are upping their weightings in cyclicals in anticipation of a global economic recovery in the second half of the year. After a year in which defensive stocks have been the mainstay of most corporate bond funds, improving economic newsflow and beaten down valuations are drawing managers into the higher beta sectors of the market. Charles McKenzie, head of fixed interest at Deutsche Asset Management and manager of the group's Corporate Bond Plus fund, says he has been decreasing his overweight position in the defensive utilities sector in favour of classic cyc...