European and US pension fund clamor boosts long-dated paper

Joanne Frearson As the European Central Bank becomes more hawkish about a rise in interest rates, fund managers are hastening to reposition their global government bond portfolios. One option is to build exposure to the US and UK markets where there are signs rates are close to peaking. Another strategy, being pursued by Royal London Asset Management (RLAM) and Standard Life, is to move longer duration on their European bond exposure, hoping pension fund demand for long-dated paper will keep prices firm. Paul Rayner, senior fund manager of the Royal London UK Fixed Interest Trust at...