Word on the Street: High yield bonds

Funds in the UK Other Bond sector are increasingly divserifying away from the domestic market as the...

Funds in the UK Other Bond sector are increasingly divserifying away from the domestic market as the UK sub investment grade universe has shrunk to an universe of just 38 issues. The remit for the IMA sector does allow funds UK Other Bond funds to have 80% of their assets either in sterling or hedged back into the currency. However, more and more funds are moving towards the latter approach, meaning they are UK by domicile and currency alone with the sector no longer reflecting where these funds invest, with the majority adopting a more global remit. High-yield funds from JPMorgan, Aegon,...