TwentyFour AM's Bowie reduces duration to lowest-ever position

Half of fund matures within three years

TwentyFour Asset Management's Chris Bowie is running the lowest-ever credit spread duration on his £1.3bn Absolute Return Credit fund at 2.2 years.

Bowie, who has run the fund since August 2015, has reduced the duration from 3 years to 2.2 years over a 12-month period. He had previously said he expected 2.75 years to be the lowest he would move to but was forced to revise this at the start of 2018.  "The duration has evolved over time. We have been gradually reducing duration as yields have fallen and the risk/reward of holding a high duration portfolio has become more stretched. The yield compared to duration now looks quite extreme," he said. "We have de-risked the fund and the high yield weighting has fallen 50% from 12% to...