Chris Palmer, manager of the Old Mutual Dynamic Bond fund, has predicted that fully-fledged companies with moderate growth goals will fare the best in the ongoing economic downturn.
The fund invests in a diversified portfolio of investment grade and high-yield bonds across global markets using a flexible approach, with no geographical or sector restrictions. Palmer commented: "First quarter company results gave an early indication of the extent of the earnings differentiation between those companies with a mature business focus and those with a more speculative growth profile. Among the most vulnerable in the current economic downturn will be firms which depend heavily on sales growth to deliver their business plans." Palmer was pessimistic for indebted companies i...
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