London & Capital changes income managed portfolios

The founding partner and head of adviser solutions for the firm, said in the light of US tapering and potential risks to US fixed income, that the capital adviser solutions division has reduced its interest rate sensitivity.

It has also decreased the allocation to overseas equity. Mr Leigh said the team did this as developed market economies are improving and central bank policies starting to diverge as the US Federal Reserve tapers.

Mr Leigh said: “The Federal Reserve is now in the process of tapering its QE programme, making the Treasury market vulnerable to yield spikes.

“With this in mind, we have reduced the interest rate sensitivity (duration) across all portfolios introducing new funds with greater flexibility to manage this risk.”

Earlier in February, US veteran investor George Soros took a significant bet against the S&P when he bought a put option against his flagship investment fund.