Luis seeks dollar opportunities

The F&C Strategic Bond Fund, managed by Citywire AAA-rated Fatima Luis, remains in ‘defensive mode’ with high yield accounting for around 45% of the portfolio’s assets, its lowest level since Luis has managed the fund. 42% is invested in investment grade, 8% in unrated bonds and 5% cash. “At the stock level I am focused on high conviction names,” explained Luis, “while also taking an opportunistic approach to the new issuance market, particularly with regards to USD denominated debt.” “During April for example we successfully traded US packaging firm Verso, participated in European oil refiner Petroplus, which was issued in USD.

Elsewhere the fund reduced Smurfit Kappa after the successful IPO and successfully took profits in Spanish gaming company Cirsa after buying a large position following concerns surrounding corporate governance back in January. The company recently reported strong results.

In Luis’ Maximum Income Bond Fund, which exclusively invests in high yield, she added BB rated Tereos and participated in Norwegian drilling company Sevan Drilling.