Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a752454

Kames’ Milburn blasts firms over wave of ‘insulting’ bond issuances

by Matthew Goodburn on May 21, 2014 at 15:15

‘We are favouring US high yield mainly because treasury yields are a bit better, as well as being a bit longer duration and having wider spreads.’

While long term performance remains strong, Milburn admitted that he had ‘dialled down the risk’ on the high yield bond fund too early, which had led to the fund being 30 basis points behind its benchmark over one year.

‘We had too much in high yield too early.  This year we expect European and US high yield to return about the same so want a lower beta strategy.

The €2 billion fund currently has 60% in US dollars, 15% in euros and a further 20% in sterling. ‘If there is a rush to the exit at some point, the UK market is not as big or liquid as the other two,’ he said.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the funds

  • Kames Strategic Global Bond A Inc EUR Hedged
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Kames High Yield Global Bond B Inc USD
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Kames Strategic Bond Acc A
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Philip Milburn
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Read more...

How is regulation feeding the outsourcing trend?

on Jul 24, 2014 at 10:59

Sorry, this link is not
quite ready yet