Schroders were the strongest performer as the manager retained a sizeable allocation to high yield, and was rewarded in May as the sector had another strong month, registering its 11th consecutive month of positive returns (as measured by Merrill Lynch's Global High Yield Constrained Index).Following the first quarter, Threadneedle again provided useful returns. This was due to the market preference for high yield debt, which forms the bedrock of this fund. The manager participated in a good number of new issues including Petroplus, a European oil refinery business, PTS Acquisition, a speciality pharmaceutical processing company, Sevan Marine, an oil rig operator, and Tereos, a Europeanbased sugar producer.Aegon are represented through their Global Bond Fund. By June the manager saw how the yield on bonds maturing in ten years (ten year bonds) continued to rise. As with other managers, the fund had invested in bonds where there was collateral backing the bond. This type of bond performed well and boosted the performance of the fund. As a further protection against rising interest rates the fund also maintained it's exposure to bonds maturing in the near term.Royal London had a tough time over the last three months. However, the manager has kept to the same strategy as reported for the first quarter of the year. As a result he is maintaining his belief that stock selection is currently the main driver of performance. An overweight in lower rated bonds, in secured Property, Investment Trusts and AssetBacked Securities, continues.
50.51p
