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David Coombs, head of multi-asset at Rathbones Unit Trust Management
The falling bond market across both credit and sovereigns has provided a recessionary hedge as the outlook for growth grows ever bleaker, although multi-asset funds are still struggling to tackle the difficult investment environment.
David Coombs, head of multi-asset at Rathbones Unit Management Trust and manager of the Rathbone Multi-Asset Strategic Growth portfolio, argued that conventional sovereign bonds are a good recessionary hedge for investors. "As yields rose in the second quarter, we added to our bond portfolio, selling off some index-linked assets as US treasuries rose to 3.5%, and subsequently buying into conventional 10-year US treasury notes," he said. "We have been in the recession camp for nine months now and have positioned best we can but still have negative numbers on the portfolio level year to...
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