How SWIP European High Yield Bond weathered a tough year

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Last year was heralded as the end of the bull market in bonds, with investors tipping a great rotation into equities as interest rate rises loomed.

While not as pronounced a move as predicted, investors did shy away from bonds, with equity markets outperforming fixed income by some margin. Gilts and emerging market debt bore the brunt of the selling as yields on core government bonds rose and EM debt pegged to the dollar showed signs of strain, but other areas continued to deliver for investors. High yield remained a decent performer, outpacing inflation substantially, and although fears remain it faces a sell-off, others expect a similar performance to 2013. Among the winners last year was SWIP’s European High Yield Bond fund...