Collins Stewart warns of bond fund struggles

The fund manager cited declining inflationary pressures as a cause of falling bond yields as interest rates remained relatively low and stable. Mark Despres, manager of the offshore Collins Stewart Total Return Bond fund, said: “With the long run in bond markets now over, the more traditional bond funds will find the environment very difficult to generate attractive returns given the limited scope they have – they are only able to buy the market and can only make money if bond prices are rising.” Despres said bond managers had been forced down ‘dangerous avenues’ in this environment a...