Hargreaves Lansdown has added Stewart Cowley’s £380m Old Mutual global strategic bond to its Wealth 150 list of recommended funds.
The adviser says unlike some rivals the bond fund is “agile” and can protect investors by holding large amounts of cash or by taking ‘short’ positions, where it can bet on falls in a bond’s value.
It says Cowley is a “highly successful and experienced global bond manager and he has made astute market calls in the past”.
HL investment analyst Rob Morgan says: “This level of flexibility could come in very handy. Stewart Cowley believes a great reversal will eventually take place in the global bond markets, when interest rates rise to curb inflation. This, he believes, will see bond yields soar and prices fall, possibly quite dramatically.
“However, he first envisages a sustained period of rising bond prices, where yields fall to new lows, and he has positioned the fund primarily in gilts to take advantage of this.”
Cowley took over the fund from Richard Stevens in May 2009.
It reports a return over the past three years of 59.1 per cent, ranking it seventh in the IMA global bond sector which contains 48 funds.