Graham Duce

“We believe that the credit markets offer stronger risk-adjusted returns for 2009 than equities. Last year, within the bond space, we witnessed a strong flight to quality as investors shunned higher risk bonds for the safe haven of government debt. We now believe that government debt is expensive, while investment grade credit offers investors value relative to both government debt and equities. One lesson from the last 12 months is cheap assets can get cheaper. The Bluebay fund offers investors a flexible corporate bond fund that has both the remit and team to benefit from volatile market conditions.” We have increased the portfolio allocation to this asset class via Blue Bay Investment Grade, while reducing Thames River Global Bond. However we have done this in a managed approach leaving us some more firepower to add to the position later on.