Rathbones' Cazalis: Why UK financials are our comfort blanket

More 'compelling' option than US and Europe

Since the Rathbone High Quality Bond fund was launched just under a year ago, its manager Noelle Cazalis has reduced its average duration by more than a third, and is being "more selective on which sectors to allocate to", principally finding some of the best opportunities in UK financial securities.

Cazalis, who made the fund available to the broader UK retail market last month, said the biggest changes she made to the fund's average duration - which has fallen from three to 1.8 years over the past year overall - mostly occurred during the past month after the yield curve in the UK inverted. Rathbones' Moore urges caution over strategic bond sector "You look at the shape of the curve [and] it is inverted pretty much all the way to the 10-year gilt. If you buy a 3-month T-bill, you get a yield of around 0.75%, and this is what you get today on a 10-year gilt. "So we have reduce...