RISKS AFFECTING BOND PROXIES
Fidelity investment director Matthew Jennings says utilities are out of favour as the UK government is encouraging people to switch suppliers and enforcing price caps, while investors worry that the Labour Party could come into power.
Despite this, there are interesting opportunities with Jennings flagging
National Grid (NG.) thanks to its good dividend yield and fundamentals.
Another sector out of vogue is the tobacco industry, affecting British American Tobacco and Imperial Brands.
Investors have turned against the sector as rivals have stolen market share amid regulatory pressures, lower cigarette sales and the increased popularity of vaping.
Even consumer colossus Unilever could be in for a tough time as concerns over valuation and future growth could weigh on performance according to Jennings.