Fixed income: winners and losers in H1
By Kristen McGachey, 14 Jul 17
As we move through the halfway point of 2017, many investors have grown wary of the risk asset rally and are returning to the relative safety of fixed income funds. But which have performed the best year-to-date? And which have not fared so well?
Billed on the firm’s website as “a more secure alternative to equity income” that aims to generate 5% per annum income, net of all expenses, the Tideway GBP Hybrid Capital fund has returned 9.44% in 2017 thus far.
As its name suggests, the fund consists of a hybrid capital portfolio that invests in household names but also has a 50% limit of sub-investment grade senior issuer ratings and a 30% limit on contingent convertible bonds.
The fund has medium volatility and there is no restriction on its duration.
Top holdings as a percentage of NAV as of 31 May 2017, included EDF (6.5%), Credit Agricole (5.3%) and Nationwide (4.8%).
Tags: Ashmore | Barings | First State | Lazard | Morningstar
