Managers revamp bond funds

John Pattullo and Jenna Barnard have forecast at least one further base rate hike by the Bank of England this year and with this in mind have cut duration, the extent to which positions would be affected by a change in rates, to two years in the Strategic fund and three in Preference, the lowest limits permitted. The duo has also invested in floating rate notes and secured loans, meaning the yield on the investments will increase with any interest rate rises. The floating rate exposure has been increased to 33pc in Strategic and 26pc in Preference. The managers have also instigated 0.7 ye...