volatility is providing plenty of opportunities
This fund was launched in June 2005 and has been managed by James Foster since that date. Its advantage compared to other funds is the size of the fund which provides the manager with greater flexibility. In this update James focused on where he is finding value and where he is less enthused.
We started by looking at Government Bonds and James explained that nearly 30% of government bonds globally are negative and with low inflation and little signs of rising interest rates across the developed world his outlook is pretty negative.
In Europe interest rates have moved to zero with deposit rates at -0.40%, the US has indicated that rates are unlikely to rise more than once this year and in the UK any increase is now likely to be in 2017 at the earliest which supports his negative view. He added the fund does have a small exposure to bunds and gilts to provide some downside protection but he is not looking to add to this…(read more)