Banks, defence and leisure favoured for Thompson's High Income fund

Defence, banks and engineering stocks are still the favoured content of Toby Thompson's New Star Higher Income fund, however several names which advisers might expect to see during a market downturn are now seen as risky investments. Thompson says his fund remains overweight in leisure stocks and now account for 9% of the total portfolio, along with William Hill - which recently floated on the London Stock Exchange - as well as holdings in tour operators MyTravel and First Choice. In particular, Thompson believes banks are still undervalued, even though the profit warning issued b...