Graham Duce
“We believe that the credit markets offer stronger risk-adjusted returns for 2009 than equities. Last year, within the bond space, we witnessed a strong flight to quality as investors shunned higher risk bonds for the safe haven of government debt. We now believe that government debt is expensive, while investment grade credit offers investors value relative to both government debt and equities. One lesson from the last 12 months is cheap assets can get cheaper. The Bluebay fund offers investors a flexible corporate bond fund that has both the remit and team to benefit from volatile market conditions.” We have increased the portfolio allocation to this asset class via Blue Bay Investment Grade, while reducing Thames River Global Bond. However we have done this in a managed approach leaving us some more firepower to add to the position later on.
AMOUNT (€) FUND
15,000 BlueBay Investment Grade (European corporate)
14,000 Thames River Global Bond EUR (global sovereign fixed)
10,000 Mainfirst Avant Garde (pan-Euro equity)
10,000 Templeton Asian Bond Fund (Asian bond/currency)
9,000 Martin Currie North American Alpha (US equity)
8,000 JO Hambro Capital Continental European (Euro ex-UK equity)
6,000 Melchior Select Japan Advantage (Japanese equity)
5,000 Blackrock Absolute Alpha (absolute return)
5,000 Findlay Park US Smaller Companies (US equity)
5,000 Resolution Hexam Global Emerging Markets (GEM equity)
4,000 Thames River High Income EUR (global credit)
3,000 Cash (money markets)
3,000 SG Japan Core Alpha (Japanese equity)
3,000 Veritas Asian Fund (Asia Pacific equity)
