Luke Hickmore, the manager of the £77m SWIP Strategic Bond fund, has upped exposure to high yield and investment grade cross-over indices in a short-term bid to protect the portfolio against unknown risks in the market.
The UK government bond bull run is ‘overdone' and set to derail, with yields rising from their historic lows as investors struggle to find value in the space, managers say.
In the latest Conjecture debate, our panellists from Aberdeen Asset Management, Rathbone Unit Trust Management and Standard & Poor's discuss UK Equity Income.
Henderson chief economist Simon Ward has said the sharp fall in gilt yields does not indicate the UK is headed for a Japan-style deflationary environment.
The gilt market is becoming like the tech sector in 2000 as investors pile into UK government debt, warned Schroders' Adam Cordery.
Old Mutual's Stewart Cowley and LGIM's Richard Hodges have reversed their short duration stances and removed their treasury short positions as the flight to safety pushes yields to record lows.
Manager of the City Financial Strategic Gilt fund is the only FE Alpha Manager in the UK Gilt sector.
Investors can find some attractive opportunities in bond markets amid the turmoil, according to SWIP's Steven Logan, co-manager of the group's £1.3bn High Yield Bond fund.