Newton's Brain moves into high yield and EMs

Newton manager predicts risk on trades will perform best in short term despite gloomy economic outlook.

Newton’s fixed income specialist Paul Brain has been running the £518m Global Dynamic Bond fund since April 2006, making tactical shifts across the bond market spectrum to generate performance. The fund’s three-year return is double that of the sector average at 34.7%, according to Morningstar. Brain said the bulk of these returns were generated by a sizeable shift away from corporate credit in 2008 to government bonds, just prior to the financial crisis. He made the move as concerns about the amount of leverage in the market increased. He then moved back into high yield and emerging ...