LGIM's Benstead on why he hasn't joined the 'short duration party' in fixed income

Mark Benstead, fixed income fund manager at LGIM, explains why he believes duration should be 'embraced' within bond portfolios, rather than traded in a bid to produce alpha.

While he admits yields are low and it is understandable there is concern about rising yields in fixed income portfolios, he believes managers should be cautious about following the herd and the endemic style drift across lots of assets into short duration bonds. In particular, Benstead believes short duration investment grade bonds should be questioned when they are part of a core part of fixed income allocation. In this video he explores alternative options and his view for the asset class as a whole in 2017.