Rathbones' Jones sticks to short duration amid threat of rising inflation

Bryn Jones has delivered top-decile performance on the £62m Rathbone Ethical Bond fund over the last year, returning 11.3% compared to the average corporate bond fund return of 6.9%

Here the manager explains why he has inflation pegged to climb above 6% this year, and how he plans to protect investors from soaring prices. To what extent are you worried about inflation and how is that reflected in the fund? We were worried about inflation last year and moved into inflation-linked bonds. These offered significant yield uplift. For example, BT was offering a 3% real yield, equivalent to 8%-9%, while its conventional bonds were only yielding 5%-6%. We also invested in floating rate notes that would not be hit by rising rates, while buying some convertibles, which were ...