Mick Gilligan, manager of our hypothetical growth portfolio, has decided to sell the portfolio's holding in Thames River High Income and switch the proceeds to M&G Strategic Corporate Bond fund (Accumulation units).

Thames River High Income has been in the portfolio since its inception in October 2008. The fund invests in government and corporate bonds in the emerging markets including high-yield bonds.

Explaining the reason for the move, Gilligan says: 'Risk assets, including the type of bonds held in the Thames River High Income fund, have rallied well since recent lows. However, I see a short-term risk of reversal and I am keen to reduce the overall portfolio sensitivity to risk assets.'

He regards M&G Strategic Corporate Bond fund as a safer bet. It invests predominantly in mainstream investment grade corporate bonds, though it can invest in other debt instruments. It is managed by Richard Woolnough, whose investment strategy is based on his macro-economic views. He has a strong track record of getting it right.

With the proceeds of the switch (minus commission), Gilligan bought 3,893 units in M&G Strategic Corporate Bond fund (Sedol 3382813) at a price of £0.8498 on 31 October.

The growth portfolio can be viewed here.