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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.
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On the road
on Aug 01, 2014 at 12:55