Gartside: govt bond yields pose risk to capital

Schroder Strategic Bond is focused on interest-rate sensitivity, yield-curve flattening and US inflationary bonds

Schroders' key investment themes in its Strategic Bond fund are an avoidance of government bonds and exploiting opportunities in risk assets. Global head of fixed income and lead manager on the fund Nick Gartside says he is simply not interested in government bond yields at their current levels, saying it poses a risk to capital. He also says there are clear opportunities in risk assets, with credit spreads back to 1920s levels but flags that the high inflation levels of the 1970s and 1980s need to be stripped out in order to arrive at the real yields, which he says are not yet attracti...