New Star's Roantree predicts depreciation on govt stocks

New Star Sterling Bond manager Phil Roantree is anticipating capital depreciation on government...

New Star Sterling Bond manager Phil Roantree is anticipating capital depreciation on government stock and is repositioning his portfolio away from the asset class as a result. Roantree, who managed the fund at Aberdeen before it transferred to New Star earlier this year, has been building up his exposure to corporate paper as a result. He said while companies are still in the process of repairing balance sheets, policies are in place to promote economic recovery and when this happens, gilt yields should move higher and capital values come down. To compensate, he has increased expos...