Jupiter's Bezalel cuts high yield for 'safe haven' govt bonds

Australian, Norwegian and Canadian government bonds are the new safe haven for bond investors, Ariel Bezalel, manager of Jupiter's £418m Strategic Bond fund, has said.

Over the past two months, Bezalel has slashed his high yield exposure from 65% to 50%, and upped his net exposure to Australian government bonds by 7%. "Australian government bonds are the best hedge to a growth shock, especially if you are nervous about the world, nervous about emerging markets, nervous about the sovereign crisis in Europe," he said. Bezalel now has 20% in Australian government bonds and 5% in Canadian government bonds. He also has a short positions in Japanese government bonds of 3%, and 2.5% in US treasuries. "Today we are dealing with a world economy where the ...