The falling bond market across both credit and sovereigns has provided a recessionary hedge as the outlook for growth grows ever bleaker, although multi-asset funds are still struggling to tackle the difficult investment environment.
David Coombs, head of multi-asset at Rathbones Unit Management Trust and manager of the Rathbone Multi-Asset Strategic Growth portfolio, argued that conventional sovereign bonds are a good recessionary hedge for investors. "As yields rose in the second quarter, we added to our bond portfolio, selling off some index-linked assets as US treasuries rose to 3.5%, and subsequently buying into conventional 10-year US treasury notes," he said. "We have been in the recession camp for nine months now and have positioned best we can but still have negative numbers on the portfolio level year to...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes