The build-up of his forces on the border to pressure the West was universally seen as not likely to lead to an invasion, we were wrong. Fears of inflation and accelerated central bank action to play catch up are now compounded and increased by rapid moves in commodity prices not least dramatic moves in the energy complex. These are as uneasy and uncertain times for risk assets as we will see. Government sanctions have been swift but also the scale and breadth of the corporate response has been impressive.

Our recent trades reflect our continued de-risking of the fund from a credit and interest rate perspective. We bought 5-year floating rate senior secured covered paper from Clydesdale Bank and the Bank of Montreal and sold Experian 32’s, Investec T2 26’s, Pearson 30’s, Heathrow 29’s, British Land 29’s, HSBC 28’s and Maersk 25’s. We also reduced some of our infrastructure exposure, selling some GCP and HICL.

The above article has been prepared for investment professionals. Any other readers should note this content does not constitute advice or a solicitation to buy, sell, or hold any investment. We strongly recommend speaking to an investment adviser before taking any action based on the information contained in this article.

Please also note the value of investments and the income you get from them may fall as well as rise, and there is no certainty that you will get back the amount of your original investment. You should also be aware that past performance may not be a reliable guide to future performance.