Aviva's Higham slashes risk across bond portfolios

The manager of Aviva's £1.6bn Corporate Bond fund has been reducing risk in the portfolio in the view bond markets will be affected by ongoing macroeconomic uncertainty.

Chris Higham has been taking a similar stance across his other portfolios, the £43m High Yield fund and the £85m Strategic Bond fund. "We have been reducing risk in the rally of the last few weeks," he says. "Government bonds and high yield have been phenomenally strong year to date. Investment grade corporate bonds are up 9.5% year to date, while strategic bonds are up 10% and high yield 10.5% to 11%. "This year is about trading the ranges. Credit markets will remain volatile over concerns about US growth, the housing market, and sovereign risk. There are enough things out there that...