Alex Borer

“Economic uncertainty continues to rule the financial markets. A tug of war between worries about an escalating European debt crisis and attractive risk premia is still moving the markets. We believe that, in the current environment, yield and credit strategies offer the best risk-adjusted returns. As a result we allocate 5 per cent to convertible bonds, which offer both current income and upside potential to equity markets. This month we remove the Cazenove International Fund and replace it by the MFS Meridian European Value Fund (4 per cent). Liquidity is now down to 5 per cent.”