Henderson's Bill McQuaker has increased exposure to index-linked bonds in recent weeks on the view the global economy faces a "meaningful risk" of higher inflation in the medium-term.
McQuaker, who runs three Henderson multi-manager vehicles, has exposure to both UK and global linkers, through the Royal London Index Linked and Global Index Linked funds. The manager has a 5% weighting to linkers in each of his portfolios. While McQuaker concedes inflation-linked bonds current offer low real yields, the manager believes the assets will be in high demand should inflationary pressures build in the medium-term. "Real yields are quite low, but since we first bought the positions the real yields have gone a lot lower and we benefited from this Bearing in mind we have the ...
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