JIM LEAVISS IN FOCUS: AMERICAN BONDS

Around the world, we have negative yields, which effectively charge investors to own bonds, especially in places like the eurozone and Japan.

Yet a 10-year American government bond yields 1.6pc. America is an outlier. The dollar is strong and this will be a drag on growth as goods exported from America to the rest of the world become more expensive. ve. The central tral bank will ll cut interest rates and bond d prices will rise.

rise and the value of the bond falls. My team is very confident about investing in corporate bonds at the moment, though. They think there’s no reason why yields should rise.

WHY ARE BOND YIELDS SO LOW?

It is difficult for savers. This is not just a British problem, the same is going on in Europe. If you look at the history of bond yields, it’s a line that only heads downwards to where we are now.

Part of the reason is the number of baby boomers living longer, as life expectancy has risen.

The interest in safe income from bonds, and other assets like property, has risen. The more demand there is, the lower the yields and income will be. There isn’t a lot we can do about that.

DO YOU OWN THE FUND AND HOW ARE YOU PAID?

I have invested a lot of money into my funds. We also get paid a salary and a bonus based on the fund’s performance.

WHAT WOULD YOU BE IF NOT A FUND MANAGER?

Some combination of a professional track cyclist, rock god, modern conceptual artist, novelist and politician rolled into one.