Skandia Investment Group has switched its fixed interest investment in three of its multi manager funds into the Nordea 1 - European High Yield Bond Fund, which is managed by Capital Four Management.

The move came following a reassessment of Skandia’s existing fixed interest holdings following the financial crisis and the downgrading of many subordinated financial bonds.

As a result of that reassessment, fixed interest investment in Threadneedle’s European High Yield Bond fund has been switched to the Nordea Fund. The investment was held in the Skandia Global Fixed Interest Blend Fund, Skandia Bond Income Fund and the Skandia Diversified fund.

Adam Smears, 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.”