Legal & General Investment Management's strategic bond manager Richard Hodges is sticking by his gilt exposure even though he sees 'little value' in the asset class.
At the end of last year Hodges added to his position in long-dated UK gilts and cut down his high yield exposure, to shield the £1.8bn Dynamic Bond trust from market volatility. However, Hodges said he does not anticipate a prolonged rally in the value of gilts, expecting yields to remain near record lows. Instead the bond manager is preparing his trust for a stagnant growth environment, in which he expects gilts to trade flat. He is holding the asset class for risk management purposes. He said: "I see very little value in gilt yields but I see no reason why they should go up signi...
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