Spreadbury underweights financials on double-dip fears

Fidelity's bond manager Ian Spreadbury is running a chunky underweight to bank debt in the view it is particularly at risk from the threat of a double-dip recession.

Spreadbury, in charge of the £2.4bn Fidelity MoneyBuilder Income fund and the £592m Strategic Bond portfolio, has less than 20% of either fund invested in bank debt, compared to a 40% weighting in the benchmark. Spreadbury says he prefers debt issued by more defensive sectors such as tobacco and healthcare. "I have low conviction on financials and I have kept my exposure at a relatively low level," he says. "Bank debt is now more risky, and although it is not my base case, many banks could get in trouble again, so I have under 20% in my portfolios compared to the benchmarks." Sp...