The team have been at the helm for over 10 years and the performance is one of the strongest within the sector. The team focus on three core tenets – thematic bond investing, sensible income and pragmatic duration management. They aim to deliver a total return in any environment.
They are aware that the media and market is waging a war on bonds, but they still believe there is a place within portfolios. If investors believe we are in an environment where rates will remain lower for longer then there is a place for bonds. The move towards alternatives, they believe, is dangerous because they don’t behave in the same way.
In terms of forecasting they think this is a dangerous game; in 2018 people were forecasting rates would rise. In the US rates have fallen, in the UK rates may go down and it demonstrates how forecasters are rarely right….read more