Why we have raised our high yield exposure

ON BONDS

The outlook for Europe is dominated by the fear that a sovereign debt default could have severe consequences for the solvency of banks and for global economic growth.

We believe, however, that there are plenty of attractive investment opportunities for the Jupiter Strategic Bond fund. This is partly due to the generally healthy and improving state of corporate balance sheets, and also because of government credits which we feel offer the best hedge against this uncertain economic environment. ECB measures announced at the end of 2011 have definitely helped ease liquidity in the European banking system. As a result, we are more comfortable with adding exposure to high yield bonds, and we have raised the fund’s allocation to over 50% (as at the end o...