Graham Duce

“Corporate bonds have had another strong month as credit spreads continue to narrow, fuelled by the announcement by the ECB to introduce the Outright Monetary Transactions which has increased investors risk appetite. With many long only credit funds generating total returns well into the teens for 2012, we have taken profits by selling the remainder of the L&G Dynamic Bond Fund. We reinvested within the same asset class, but with reduced sensitivity and directionality to spreads. The Pictet Kosmos Credit Long Short fund targets an absolute market neutral return from investment grade instruments and has a focus on managing downside risk.”