The trades driving M&G Episode Income to the top of its sector

The M&G Episode Income fund has seen a substantial shift in asset allocation over the past 12 months, boosting returns to drive it up the sector rankings.

The £323m fund is the top performer in the IA Mixed Investment 20%-60% Shares sector over the year to 20 March, returning 17% versus a sector average of 9%, according to FE. Over the period, manager Steven Andrew has substantially changed allocation to both equities and bonds to align the fund with the current economic environment. In equities, the major change has been the shift away from exposure to the US into Europe. US equity holdings went down from 22% a year ago to 6% currently, while Europe now makes up 16% of the portfolio, up from zero exposure this time last year. "The m...