Euro scepticism prompts Axa's Wilmont to maximise US weight

AXA Investment Managers' Andrew Wilmont has taken the Pan European High Yield Bond fund's US exposure to its limit on the view European bonds are becoming expensive.

Wilmont has increased the fund’s exposure to US-denominated paper from 2% to 10% since July. “We think the European market may be getting ahead of itself,” Wilmont said. “It is a small market representing one-fifth of the global market and is volatile due to its short-term investors, but is not currently paying a premium for taking on the associated risks, except in financials.” Wilmont has recently moved around the capital structure of global healthcare group Fresenius, selling out of its euro-denominated paper, which he deemed too expensive, and buying into its dollar debt. Ov...