RLAM's £1bn bond manager: My best offbeat ideas

Royal London Asset Management's Eric Holt has said investment ideas outside the mainstream have helped performance on his £1bn fund despite a liquidity squeeze in bond markets.

Holt, who manages RLAM's Sterling Extra Yield Bond fund, said diversity and exposure to more offbeat bonds has helped him negotiate the risks within the market. Holt is particularly enthusiastic about asset-backed securities in areas which have struggled to find financing since the recession, such as social housing and rail rolling stock. "I have been moving away from the mainstream, and you can get real reward for that. You can use bonds to mitigate risk and find returns. "We are looking at areas that are matured and structured bonds with asset backing, where there is a claim on a...