IA Sterling High Yield
Performance of indices 2008 - 2010
ICE BofA Sterling High Yield ( 83.3 %) FTSE 100 ( 2.8 %)
100 % |
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80 % |
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60 % |
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40 % |
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20 % |
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0 % |
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-20 % |
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-40 % |
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-60 % |
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Jan08 |
Apr |
Jul |
Oct |
Jan09 |
Apr |
Jul |
Oct |
Jan10 |
Apr |
Jul |
Oct |
Source : FE Analytics
it is supposed to ,” says Davies . “ Unlike the start of last year when our options were very limited , today is totally different and there are reasons to be positive on the outlook for high yield markets .”
What lies beneath However , while positive on the yields and opportunities available in bonds , Davies remains cautious in his outlook for the global economy and large swathes of companies in his investment universe , given the challenges that consumers and businesses face with inflation and higher borrowing costs . “ This leads us to focus on the better-quality issuers for now , with the average credit quality in the portfolio being BB ,” he says . “ Our natural tendency is to UK issuers and we have seen some fantastic opportunities in this space over the last year . Because it is a smaller market it can at times be
Issue 92 - February 2023 / 57 /