Investment Conundrums: Why Premier CIO Birrell is 'as underweight as can be' in bonds

Lack of attractive valuations

Premier chief investment officer Neil Birrell is "as underweight as can be" in traditional fixed income across the two funds he manages on the view the risk/reward outlook for the asset class is not attractive.

Birrell, who was appointed CIO in 2013, runs the £97m Diversified and £27m Diversified Income funds.  His bearishness on fixed income means he has zero exposure in the Diversified fund and just 30% in the Diversified Income fund, the minimum allowed under Investment Association sector rules.  Premier AM launches Diversified Income fund for CIO Birrell The exposure in the Diversified Income fund comprises 15% short duration corporate bonds and 15% alternative fixed income, which includes assets such as asset-backed securities and specialist lenders.  "We have zero exposure in Div...