Rotating out of high yield and EMD
De-risks in favour of US Treasuries
Strengthening dollar a risk
For first time since cutting it in 2016
Amid other promotions on the team
Investors want short duration
A strong dollar tends to foreshadow bad tidings in the global economy. From high yield, to emerging markets and even US interest rates, no corner may be spared the effects.
Fund managers are urging caution following a dramatic week for investors, saying the traditional strategy of buying on market falls may no longer make sense.
Jupiter has written to unitholders in Ariel Bezalel's £1.6bn fund, asking them to vote on plans which would give the manager wider powers to use derivatives to take short positions.
Investors are struggling to find ways to beat inflation in the UK, with savings accounts paying virtually nothing and bond yields squeezed by demand, but there are a number of funds out there which can deliver for investors.
Jupiter has launched a Dynamic Bond fund for strategic bond manager Ariel Bezalel.
Ariel Bezalel, manager of the £593m Jupiter Strategic Bond fund, has opened his first ever short position in US treasuries, citing the opportunity for an asymmetric trade as the US economy recovers.
Managers fear France could be the next European nation in line for a downgrade as it steps in to support beleaguered bank Dexia.