Fund That Dodged Rout Warns ‘Populist’ Policies to Hit Bonds

A bond fund which delivered a positive return during last month’s global debt selloff is betting yield curves will steepen globally as governments pursue expansive fiscal policies to cushion the blow of the energy shock.

The €3 billion ($3.5 billion) Carmignac Portfolio Flexible Bond strategy has been buying short-dated securities in the view that yields are poised to fall as bets on interest-rate hikes are unwound.