F&C's Luis cuts high yield exposure

F&C's Fatima Luis is planning to reduce her exposure to high yield names by at least 10% in both her £125m Extra Income Bond and £225m Strategic Bond funds.

Luis believes the best gains have now been made in this area, although a few opportunities still remain. "From our perspective the ‘opportunity of a lifetime' has largely passed by and arguably we are now in a position where valuations are taking too sanguine a view of both default risk and the economic outlook from here," says Luis. "Throughout the post-March rally we adopted an active approach, locking in gains across a range of our riskier positions. "Many of these had recovered to around par following periods earlier in the year where they were trading at around half that value...