Spreadbury hits lowest ever gilt position on Sterling Bond

Fidelity's Ian Spreadbury has reduced the gilt position to his lowest-ever allocation on FIF Sterling Bond fund, taking it to 22%.

The manager began trimming his gilt exposure in December 2008, at which point it was around 55%, three months before the total return peak in UK government bonds which took place on 12 March. Spreadbury anticipates returns from the asset class will continue to disappoint, believing rather corporate bonds could still demonstrate more volatility, adding he could reduce the sector even further. While he has been progressively buying more, he has selected carefully, favouring rated BBB and A-rated holdings. In selling off gilts, he has reinvested the proceeds into defensive corporate ...