High-yield funds dominate Global Bond peer group

F&C's Maximum Income Bond tops sector over the three years to 22 October, with manager Fatima Luis pointing to high-yield exposure as the key factor

High-yield bond funds have dominated the IMA Global Bond sector over the last three years, with defensive positioning and local currency exposure contributing to their outperformance. F&C's Maximum Income Bond fund takes the top spot over three years to 22 October, returning 22.3% against the sector average of 5.11%. Manager Fatima Luis has focused on high-yield bonds over the period, believing global growth, low interest and default rates and strong equity markets have led to it being the strongest-performing fixed income sector. Luis's core holdings within the portfolio include stable,...