Aberdeen's Stout cuts bond exposure to 25-year low

Aberdeen's Bruce Stout, manager of the £1.6bn Murray International investment trust, has reduced his fixed interest exposure to its lowest level in 25 years, claiming there is little value left in the asset class.

Stout (pictured), who typically owns over 10% in fixed income in the trust as a diversification play, has cut exposure to 4%, arguing developed market corporate and sovereign bonds do not look attractive on any valuation metric. The manager said he considered taking profits in equities after their relatively strong run over the past 12 months, but said valuations are so unattractive in bonds they make equities look better value. “The problem I am facing is equity markets are extremely expensive relative to fundamentals. Organic earnings growth rates are a lot lower than market sentime...