Paul Smith, manager of the £47.1m fund, says he added to his position in the company’s bond as it offers an attractive yield in spite of a number of strengths in the business.
“This bond continues to trade on a high yield despite the firm’s satisfactory underlying investment performance, higher concentration of fixed income assets and the encouraging progress with the management’s strategic review,” he writes in the portfolio’s latest factsheet (to April 31).
The Premier Corporate Bond Monthly Income fund has an overweight to financials despite the anticipation of further volatility in the short term. Smith adds: “We expect superior returns [from financials] over the medium to long term.”
April also saw the manager lock in more than 4% profit on the General Electric new issue the fund participated in back in January after the spread on the bond tightened.