Skandia has handed three fixed interest mandates within its multi-manager funds from Threadneedle to Nordea.
Nordea 1 - European High Yield Bond, run by Capital Four Management, replaces Threadneedle European High Yield Bond within the £30m Skandia Global Fixed Interest Blend, £61m Bond Income, and £314m Diversified funds.
The change comes after Skandia undertook a reassessment of its fixed interest holdings after seeing many subordinated financial bonds downgraded during the credit crisis.
Adam Smears, the head of fixed income research at Skandia Investment Group, says: "Despite being somewhat unknown to UK investors, Nordea is a leading financial services group in the Nordic and Baltic Sea regions and Capital Four has a proven track record managing high yield fixed interest portfolios.
"Following the financial crisis, many subordinated financial bonds were downgraded to high yield and so moved from investment grade indices to high yield indices. In common with several other high yield managers, Threadneedle took the view that this is not their core area of expertise and so moved to an ex-financials benchmark. By contrast, Nordea include financials in their investable universe. This is an area where we believe value exists."
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