Cheeseman buys strategic bond fund

The F&C fund of funds team has recently added the M&G Strategic Bond Fund across four portfolios: the F&C Multi-Manager Distribution, F&C Multi-Manager Cautious, F&C Lifestyle Defensive and F&C Lifestyle Cautious funds.

Dean Cheeseman, Head of Retail Multi-Management at F&C explained: "A number of existing bond funds held in the portfolios have been trading in a very similar fashion recently, with their managers taking a heavy bias towards banking credits given the excess yields currently available."

He added: "We are not saying this underlying trade is wrong but we want to broaden our bets to reduce potential volatility, so we have added the M&G Strategic Bond Fund to further diversify stock, credit and style risk."

According to Cheeseman the M&G Strategic Bond Fund scores highly on F&C's Traffic Light Analysis screening system and it currently only holds 11% in banks.