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Mr Borrows has upped his investment-grade and sub-investment grade corporate bond exposure from 10 per cent to 16 per cent in the £700m Midas Balanced Income fund. The 10 per cent level he has maintained for the past 32 months was the lowest allowed by the IMA Cautious Managed sector.

David Thomas, head of business development at Midas, said corporate bond spreads against gilt markets had ballooned over the past six months.

He explained: "Around 18 months ago, both investment-grade and non-investment grade corporate bond spreads compared to gilts had moved to the narrowest margin on record. Now, however, yields are very attractive against gilts and it is possible to buy short-dated investment-grade bonds offering between 225 and 300 basis points above gilts."

Mr Borrows has used direct issues and collectives to crank up his exposure, buying bonds from Marks & Spencer, Next and Brixton Estates, as well as taking a position in the £336m Royal London Sterling Extra Yield fund.

Mr Thomas said M&S was yielding around 7.5 per cent, while Next and the RLAM fund were yielding 8.75 per cent.

The portfolio shift follows a tough year for Midas Balanced Income, which has seen the fund lose 10.1 per cent against the Cautious Managed sector average decline of 4.8 per cent. Over three years the fund is second quartile, however, returning 16.9 per cent against the sector average 14.3 per cent.

UK and overseas equities continue to make up the largest chunks of the fund's portfolio, with government bonds, property and alternatives contributing to the multi-asset mix.