Causer and Read add to government bonds

Invesco Perpetual managers Paul Causer and Paul Read have trimmed high yield and credit exposure in favour of government bonds, including Spanish government debt, on their £3.2bn Monthly Income Plus fund.

The group has described the move as a "marginal rotation" on the back of weak performance in government bonds and the recent strength seen in high yield. Overall, government bond exposure on the fund has increased 2.8% to 4.9% since the beginning of the year, while the managers have cut high yield debt to 3.3%. Lewis Aubrey-Johnson, product director on the fixed income team, said the government bond exposure includes UK gilts, German bunds and Spanish government debt, the latter being just under 1%. "We have bought some shorter dated Spanish government bonds, which are offering an ...