Spreadbury to pare ‘expensive' gilts and add risk exposure

Fidelity manager prepares to add to corporate debt of winning companies with pricing power.

Fidelity’s Ian Spreadbury is preparing to up his risk weighting in corporates in his £704m Strategic Bond fund despite accepting markets are in “unchartered territory”. The manager said market volatility is likely to continue for the foreseeable future due to government debt to GDP levels which are “off the chart by historical standards,” but believes there are still inefficiencies on which he can capitalise. Pointing to the long-term correlation between nominal GDP expectations and bond yields, Spreadbury suggested current ten-year gilt yields of just over 2% are disconnected from ex...