Artemis: Stay Clear of Government Bonds as Rates Fall

For fixed income investors worried about falling yields, corporate bonds could be a safer choice than government bonds, according to Artemis' James Foster

Karen Kwok 5 July, 2016 | 4:55PM

Companies bonds are easier than government bonds to analyse risks and future returns, according to Silver-rated fixed income investor James Foster.

“If companies go bust, they have buildings and real assets to sell off which can honour bond holders debt, but with countries it is more difficult to do that,” he said. “Therefore countries are more difficult to analyse.”

This is why Foster prefers to invest in companies’ bonds when managing the Silver Rated Strategic bond fund for Artemis, which he has the flexibility to invest across the credit spectrum globally.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Artemis Strategic Bond R Quarterly Acc1.02 GBP-0.15

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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