Sarasin's Godley is neutral on long-dated government bonds

Sarasin's John Godley has started buying long-dated gilts believing prices are nearing a bottom.

The £162m Sterling Bond fund manager has moved from an underweight to neutral position on long-dated Government bonds, buying the 2040 gilt. He plans to make further purchases in coming weeks. “We have and continue to have a low exposure to gilts, preferring corporate and other credit products and certain international markets,” he says. “We have also maintained a short duration position relative to the index, and while this remains the case, we have reduced the extent. “Since the MPC gained independence, 30-year yields have rarely traded at 5%, so at 4.6% we added some exposure an...