Portfolio Manager Shifted Away From Tech Debt
Investors looking at bond portfolios may see changes in sector allocations as some managers move capital into emerging markets.
Updated on Sept. 21, 2026 in Investing
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Fidelity International portfolio manager James Durance has opted to exclude AI-related technology bonds from his managed portfolios. This strategic adjustment involves reallocating capital into different global credit opportunities.
Why it matters
This shift in strategy highlights how professional fund managers are rebalancing risk and opportunity by rotating capital out of specific sectors like technology and into broader corporate and sovereign debt markets.
The manager has officially removed AI-related technology bonds from the portfolio. These assets are now being traded for holdings in UK corporate credit and sovereign bonds from Mexico and the Philippines.
The players
James Durance
A portfolio manager at Fidelity International who makes allocation decisions for managed investment funds.
Fidelity International
A global investment firm that provides mutual funds and institutional asset management services to individual and professional investors.
The details
The manager is actively rotating capital by avoiding debt tied to the technology sector and redirecting it toward UK corporate credit. Furthermore, the strategy expands to include hard-currency debt issued by companies in Turkey. This reallocation strategy also targets sovereign bonds in Mexico and the Philippines to replace exposure that was previously tied to the technology industry.
Timeline
September 21, 2026: The investment strategy report was published.
Money Landscape
Professional investors are increasingly adjusting their credit portfolios as they navigate current valuation risks in the technology sector. This strategy reflects a broader move to capture yields in UK corporate credit and selected emerging market sovereign debt.
If you hold funds managed by large institutional firms, check your latest statement to see if your exposure to specific tech sectors or emerging markets has shifted. Discuss with a financial professional whether your current asset allocation still aligns with your long-term goals.
The takeaway
Investment strategies often evolve as managers rebalance their risk exposure to capture growth in new regions. Review your recent portfolio performance and discuss any sector-specific concerns with a professional advisor to ensure your holdings remain balanced.
Further reading
For more information on how global shifts impact your savings strategy, visit our section on Investing.
Source note: This article includes information reported by Bloomberg Business.
Live Poll
Is now a good time for individual investors to favor emerging market debt over technology bonds?
