SWIP's Webb poised to double high yield exposure

Roger Webb, manager of the £81m SWIP Strategic Bond fund, is poised to take advantage of the recent sell-off in high yield amid signs of a solution to the European crisis.

The manager has taken a more defensive tack over the past year by raising cash to 8% and index-linked gilts to 20%, but is now set to add risk as market anxiety rises. “The high yield market is pricing in extremely distressed levels,” said Webb. “But we see a more constructive solution to the eurozone crisis than the markets are pricing in.” Webb, who co-manages the fund with Luke Hickmore, is looking to take exposure to high yield up to 40%. He has also slashed his financial exposure from 35% to 25% in recent months. Webb’s high yield exposure now sits at 22%, but the manage...