• Home
  • Multi-Asset
  •  
    Retirement
    • Pensions
    • Income
    • Investment
    • Regulation
    • Estate planning
    • Equity release
  •  
    Your profession
    • Adviser tips
    • Business models
    • Companies
    • People
  • Regulation
  • Tax planning
  • Protection
  • Diversity
  • Events
  • Whitepapers
  • Industry blogs
  • EM and Asia spotlight
  • Newsletters
  • ESG spotlight
  • Sign in
  • Events
    • Upcoming events
      event logo
      Professional Adviser's Working Lunches in partnership with Orbis Investments - 2019

      Join us in March for the Professional Adviser Working Lunch series in partnership with Orbis Investments.

      • Date: 05 Mar 2019
      • Knutsford, Leeds, Surrey, Bristol
      event logo
      Professional Adviser Working Lunches 2019 - Baillie Gifford & First State Investments

      Professional Adviser is delighted to announce the launch of the new Working Lunches in partnership with Baillie Gifford and First State Investments. Travelling across the UK to provide valuable market insights for Senior Financial Advisers.

      • Date: 13 Mar 2019
      • Southhampton, Worcester, Durham, Norwich, Liverpool, Exeter, Sheffield, Leicester, Nottingham
      event logo
      Professional Adviser 360 2019

      The highly anticipated Professional Adviser 360 conference is taking place on 25th April 2019 at The Brewery in London.

      • Date: 25 Apr 2019
      • The Brewery Chiswell Street London EC1Y 4SD, London
      event logo
      Fund Manager of the Year Awards 2019

      The 2019 Fund Manager of the Year returns on Thursday 27th June 2019, Grosvenor House Hotel, London. Save the date.

      • Date: 27 Jun 2019
      • Grosvenor House Hotel 86-90 Park Lane Mayfair London W1K 7TN, London
      View all events
      Follow our events

      Sign up to receive email alerts about our events

      Sign up
  • Whitepapers
    • Find whitepapers
      Search by title or subject area
      View all whitepapers
  • Sign in
  •  
    •  

      Personalise your on site experience

      Download and use the apps

      Access your subscription from outside of the office

      Get relevant news and insight straight to your inbox

      Sign in
     
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • RSS
    • Twitter
    • LinkedIn
    • Newsletters
    • YouTube
  • Register
  • Industry blogs
  • EM and Asia spotlight
  • ESG spotlight
Professional Adviser
Professional Adviser
  • Home
  • Multi-Asset
  • Retirement
  • Your profession
  • Regulation
  • Tax planning
  • Protection
  • Diversity
 
  •  

    Personalise your on site experience

    Download and use the apps

    Access your subscription from outside of the office

    Get relevant news and insight straight to your inbox

    Sign in
 
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
Professional Adviser

Attridge reduces fund risk

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
0 Comments

govett corporate monthly income bond reduces exposure to telecoms and cable companies

Bob Attridge has reduced the risk profile on the Govett Corporate Monthly Income Bond fund over the past month.

Attridge, who joined Govett from Old Mutual in February and took over the fund on 17 April, has turned over 20% of the portfolio.

Related articles

  • Janus Henderson adjusts pricing approach on £2.8bn Property fund
  • 'Broken platform market' exposed by data from the lang cat
  • SJP directed to waive client's exit fees after 'catalogue of errors'
  • Vicki Bakhshi: Five responsible investment themes to watch in 2019
  • Succession Wealth planner becomes CISI Birmingham president

He has increased exposure to traditional companies with BBB-rated debt within the Dublin-listed portfolio and has cut back on exposure to telecom and cable companies and to higher rated, lower yield bonds.

From launch on 1 August last year to 1 May 2002, on an offer to bid basis, the fund has returned -4.1%, compared to its peer group, offshore global fixed income, which has returned 0.07%, and the UK corporate bond sector, which has returned 2.72%.

Attridge said he will continue to look for steady, unexciting and traditional corporate paper to increase the portfolio's yield incrementally.

He added: 'I am not looking for out-and-out winners. I use gilts as a benchmark and they are typically yielding around 5.25%.

'The yield on corporate bonds is currently around 6.25% to 6.5% and that is the yield we are looking for on the portfolio. Added to this, we are hoping some of the companies we hold have the scope to be re-rated.'

However, Attridge said few upgrades are going through at the moment, with close to 10 downgrades for every upgrade. He added that, as the global economy recovers, this ratio will start to shift the other way.

At present, there are 41 bonds in the portfolio. Attridge said, while he has been cutting these back, he does not want to reduce them too far as the fund will end up losing its diversification. Individual investment grade holdings typically make up 4% of the fund and sub-investment grade holdings average under 2% of assets.

The portfolio was previously managed by Rick Wisantaner, who left Govett to join Rothschilds.

Attridge is responsible for the management of all of Govett's fixed interest portfolios, which includes the onshore Corporate Bond fund and its Jersey-based UK High Income fund. He also takes responsibility for the bond holdings within the group's investment trusts.

While, on the High Income fund, Attridge can not hold anything below BBB, 75%-90% of the bonds will be the same across all the portfolios he manages, as they have similar briefs.

He said: 'The aim now is to provide a decent and secure yield through high quality, low-risk bonds. I want to improve the quality of bonds without sacrificing the yield.

'It is all about capital preservation; if bond yields go up, then prices go down. What I am trying to do is avoid the disasters in which the bond price falls sharply relative to the rest of the market and also stay away from situations where a company defaults on the bond.'

Looking forward, Attridge predicts the UK yield curve will steepen as the Government issues more gilts and in anticipation of higher rates coming through this year.



  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

More news

Janus Henderson amends pricing of property funds
  • Property Investment
Janus Henderson adjusts pricing approach on £2.8bn Property fund

To promote 'long-term investment'

  • 15 February 2019
  • Wrap/platforms
'Broken platform market' exposed by data from the lang cat

Switching 'hard and expensive'

  • 15 February 2019
  • Your profession
SJP directed to waive client's exit fees after 'catalogue of errors'

Ombudsman decision

  • 15 February 2019
There might be smaller, more nimble funds performing better than larger ones in the IA universe
  • Investment
How much does fund size matter?

Smaller funds still packing a punch

  • 15 February 2019
Green hand
  • SRI
Vicki Bakhshi: Five responsible investment themes to watch in 2019

To drive progress

  • 15 February 2019
Back to Top

Most read

SJP directed to waive client's exit fees after 'catalogue of errors'
'Broken platform market' exposed by data from the lang cat
Joined arrow
Schroders-Lloyds tie-up to provoke 'war for advice talent'
Millennial Money: Use social media to pull in younger clients
Janus Henderson amends pricing of property funds
Janus Henderson adjusts pricing approach on £2.8bn Property fund
  • About Us
  • Contact Us
  • Marketing solutions
  • Terms and conditions
  • Privacy and Cookie policy
  • RSS
  • Twitter
  • LinkedIn
  • Newsletters
  • YouTube

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017