Allocation also increased to sterling assets after the UK’s decision to leave the EU, particularly to the sterling bonds of global firms like Telecom Italia, rather than British companies.
“Telecom Italia has nothing to do with the UK but being able to buy its sterling debt at nearly twice the spread of its euro debt was an opportunity,” Mr Lundie said.
Article continues after advert
The Hermes Absolute Return Credit fund returned 1.9 per cent over one year; the IA Targeted Absolute Return sector returned 1.8 per cent over the same period, according to FE Analytics.
Page 2 of 2
