Rathbones Asset Management is increasing exposure to longer‑maturity UK gilts, shifting from underweight to neutral in its £9.6 bn multi‑asset portfolio. The move follows Chancellor John Healey’s disciplined pre‑budget messaging, which contrasts with previous leaks and fiscal chaos. David Coombs, head of multi‑asset investments, said the firm bought 10‑year gilts while trimming 2‑5‑year notes, citing steady fiscal policy under Prime Minister Andy Burnham. Benchmark 10‑year yields have risen about 30 bp to 5.33% since July, outperforming French and U.S. peers. The 30‑year yield, a key fiscal‑policy gauge, fell three bp to 5.72%, its lowest in a month. Coombs notes real yields near 2% look attractive versus equities, but he remains cautious and won’t overweight the asset class.
Key figures: £9.6 bn portfolio, 30 bp yield rise, 5.33% 10‑yr yield, 5.72% 30‑yr yield.
Key names: John Healey, Andy Burnham, David Coombs.
Key entities: Rathbones Asset Management Ltd., UK government gilts, multi‑asset funds.
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Source: Bloomberg Markets · Summarized by HeadlinesBriefing