Successful sector groups opt for gilt plays over corporate bonds

Global Bond sector managers attribute their success in volatile markets to recent favourable currency movements

Global bond funds faring well in the heavily volatile market are attributing their success to favouring gilts over corporate bonds. Currency is also playing a more important role than ever, as sterling's value has depreciated over the past year, leading to greater value when US dollar or euro-based yields are transferred back into the UK. Investec Global Bond sits seventh of 47 peers in the IMA Global Bond sector over a one-year period to 16 February, according to Morningstar data. Manager John Stopford says the fact his fund is overweight in government bonds means the vehicle has bee...