Managers light on high yield as economy falters

With expectations that the UK economy will grow by just 2% in 2003, Threadneedle's Ted Bacon is rema...

With expectations that the UK economy will grow by just 2% in 2003, Threadneedle's Ted Bacon is remaining light on the high yield end of the UK bond market. Bacon, fund manager of Threadneedle Strategic Bond, says in the run-up to Christmas he upped the portfolio's exposure to high yield as it was an environment of improving investor sentiment and encouraging trading statements. The fund increased its weighting in high-yield debt from 30% to 40% through 2002. Still, Bacon is wary of going overweight high yield debt due to the remaining uncertainty in the market, including the poss...