OMAM's Cowley ups weighting in corporate bonds from 15% to 25%

Old Mutual's Stewart Cowley has increased exposure to corporate bonds from 15% to 25% this year in his Global Strategic Bond fund, focusing mainly on the lower end of investment grade.

The manager of the £141m fund, says he could lift this to 40% as conditions improve. He is enthusiastic about technology and telecoms issues which are yielding up to 8%. “If the UK is going to reconstruct its economy and have less reliance on financial services, it is technology ideas we are good at,” he says. Cowley is holding off buying Greece’s latest tranche, e5bn of seven-year bonds with a 5.9% coupon. He believes spreads over Bunds could narrow from 3.25% to 1% over the coming three months. He says Greece’s predicament reflects the growing recognition the West “cannot keep...