Bond managers have been slashing exposure to contingent convertible debt - a key source of alpha for fixed income funds in recent months - as yields begin to fall and an avalanche of issuance appears on the horizon.
David Coombs, head of multi-asset at Rathbone Unit Trust Management, is cutting out all passive equity exposure across his fund range and buying concentrated, high conviction portfolios in an effort to add alpha.
Bryn Jones and David Coombs have bought into emerging market debt in the Rathbones Strategic Bond fund for the first time in 12 months after spreads widened significantly during the recent sell-off.