Milburn retains underweight on European high yield

Kames Capital's Phil Milburn is sticking with his underweight to European high yield within his £1.4bn High Yield Bond fund, although it has hurt performance over the past year.

The manager said he was not prepared to buy many of the volatile European names and instead stuck to US high yield. However, this did result in a slip in performance. Although the Kames fund is the best performer in its sector over five years, it has slipped into the third quartile over one year. The fund returned 14.7% over the 12 months to 25 January, compared to the sector average of 16.5%, according to Morningstar, ranking it 17 out of 26 funds. Over three years the portfolio delivered 32.1% against an average 28.8%, and over five years it is the second best performing fund in ...