Bowie prepares for 'painful readjustment' in yields

Ignis Asset Management's Chris Bowie is set to move short duration on the top-performing Corporate Bond fund, ahead of a "painful readjustment" in yield movements.

The manager has moved the fund to a more neutral duration position of seven years, in line with the sector average, after being overweight last year as he is worried about a move higher in yields over the long-term. "The timing is difficult to call. The inflation jump we saw this week is an alarm bell but we are looking for more confirmation that inflation is trending higher before we move to short duration," Bowie (pictured) said. "This is something I have been warning about for the past 12 months. Central banks have printed so much money, inflation will move higher." On Tuesday t...