Why we are aggressively underweight Europe

ON BONDS

clock

Rathbone's Bryn Jones explains why he has no weighting in core and peripheral countries.

It would be easy for us to sit here and blag that the portfolio is fool-proof, and that we are not worried about what is happening in the peripheries – of course, we are, and it would be rather ignorant, not to mention stupid of us to plead otherwise. We have, however, been aggressive in underweighting the whole of Europe over the last six months, meaning we now have no weighting in core and peripheral European banks. The rationale behind our exiting peripheral banks is obvious – for core banks, we are worried about the counterparty risk. This has, to some extent, helped to buffer rec...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Fund to Watch: A global focus on idiosyncratic opportunities

Fund to Watch: A global focus on idiosyncratic opportunities

Ahead of Investment Week's Funds to Watch conference, Capital Group's Alvaro Peró Gala, explores diversification, resilience and portfolio stability in 2025

Alvaro Peró Gala, Investment Director at Capital Group UK
clock 26 February 2025 • 6 min read
Fidelity's Mike Riddell: US growth is 'not going to be 3% forever' and the case for sovereign debt

Fidelity's Mike Riddell: US growth is 'not going to be 3% forever' and the case for sovereign debt

'It is all about what is currently priced in'

Linus Uhlig
clock 12 February 2025 • 5 min read
Hargreaves Lansdown sees four-year high in gilt purchases following January yield spike

Hargreaves Lansdown sees four-year high in gilt purchases following January yield spike

High purchases expected in February

Linus Uhlig
clock 10 February 2025 • 2 min read
Trustpilot