Artemis Corporate Bond -15.6 -4.0 N / A N / A IA Sterling Corporate Bond -16.1 -11.3 -5.1 20.0
notes that tightening credit spreads and falling gilt yields have seen the sterling corporate bond market deliver “ whopping ” double-digit gains from its October lows . “ We came into this rally overweight in credit and neutral in duration for the first time in years , so the relative performance of our strategy has been good ,” he says . “ But we are now asking ourselves if it ’ s time to take some risk out of the
Invesco Corporate Bond fund .” From a credit perspective , Aubrey-Johnson is happy to stay put , as while spreads have come in , these assets still look cheap from a long-term perspective . “ Good-quality sterling corporate bonds can be hard to source when the market is strong and we won ’ t let go of these assets light-heartedly ,” he says . Within duration , Aubrey-Johnson says Invesco has become more defensive again , moving from six-and-a-half years to six through the sale of long-dated gilts and index-linked bonds . “ The economy is clearly slowing , but it is going to take some time before wage pressures abate , and yields have rallied a long way in a short period ,” he says . “ The market has clearly come back in from the extreme levels of early October , but there is still plenty of value and we are optimistic .”
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