Canada Life Investments' Arnaud banks on Q4 Brexit deal with sterling overweight

Race against time before UK-EU deadline

Canada Life Investments' David Arnaud has expanded an overweight position in sterling-denominated bonds within his Global Bond fund, in a bid to capture gains from the confirmation of a Brexit deal before the end of 2018.

Arnaud, who co-manages the £241m LF Canlife Global Bond fund alongside Kshitij Sinha, said the move is a "tactical short-term call" as the team attempts to "pre-empt positive market movement" as he anticipates a deal will be reached "at some point in Q4". Brexit negotiations have been slow to progress since Article 50 was signed in March last year, held up by disagreements over the future of the Irish border and opposition to Prime Minister Theresa May's Chequers plan from EU negotiators and across parliament, including a significant proportion of her own MPs. While these concerns exi...