Julien Moutier

“Despite trading range equity markets, we have benefited from lower risk aversion over the last two months. Our European and emerging equity exposure contributed positively, whereas our US holding (Franklin Mutual Beacon) has lagged slightly recently due to its defensive stance. Our corporate bond strategies are also doing well (both high-yield and investment grade), gaining on the back of good fundamentals such as low gearing and positive results. To reduce the directional exposure and increase the carry, we trimmed our equity bet on the US by 2 per cent and added it to our high-yield holding (AXA HY US Short Term Duration).”