FUND MANAGER VIEW-Fund managers change tack as Fed reacts to virus

Fund managers are changing their allocations after the U.S. Federal Reserve stunned investors with a half-point rate cut this week to contain the economic fallout from the coronavirus epidemic. Some analysts say the Fed's move will unleash a global wave of monetary easing, which will have a big impact on financial markets.

The following is a summary of how fund managers are changing their portfolios and the advice they are giving to their clients:

TOSHINOBU CHIBA, CHIEF FIXED INCOME PORTFOLIO MANAGER AT NISSAY ASSET MANAGEMENT, TOKYO

*Buying more U.S. Treasuries with durations from three to seven years and hedging the currency risk in the forwards market *Increasing investment in Chinese government bonds as well as extending durations

*Buying into newly issued U.S. credit funds *Expects one more market sell-off due to coronavirus

*Nissay Asset Management had 13.01 trillion yen ($121.21 billion) in assets under management at the end of March 2019. VINCENT MANUEL, CHIEF INVESTMENT OFFICER, INDOSUEZ WEALTH MANAGEMENT, PARIS

*Downward revisions to corporate earnings are already priced in due to recent equity sell-off *Market correction is an opportunity to build equity positions

*High-yield bond market vulnerable spreads to widen further *Calling for a shift to equities from fixed income

MICHAEL KELLY, GLOBAL HEAD OF MULTI-ASSET, PINE BRIDGE INVESTMENTS, NEW YORK *Buying back China A-shares

*Reducing stocks exposed to U.S. services sector *Commodities have been terrible due to worries about China demand but could improve in future

*Pendulum shifting to manufacturing *PineBridge had $101 billion under management at the end of 2019

($1 = 107.3300 yen)