Jupiter CEO Maarten Slendebroek has said its Dynamic Bond fund is suffering outflows because Asian investors are more optimistic for junk bonds, while European investors do not find the fund defensive enough.
AJ Bell and Seneca are among investment managers shedding bonds as rate hikes loom, but others are concerned alternative assets present new sources of risk.
Jupiter has continued to suffer outflows in the second quarter as investors remain standoffish from its multi-billion pound Dynamic Bond fund.
Facebook, Amazon and Apple have been shunned by fund managers using an environmental, social and governance approach to investing, although Google parent Alphabet still gets a pass.
Jupiter and Schroders are forecast to report more outflows in Q2 as many retail giants struggle to retain assets.
With interest rate rises looming, duration concerns are now becoming more tangible and many commentators are wondering if a bond mis-selling scandal awaits low-risk portfolios full of bonds.
Billion pound funds from Twentyfour Asset Management and Schroders’ US small and mid-cap manager Jenny Jones have sunk from the top to the bottom in FE’s latest rebalance.
Vanguard has faced criticism for soaring duration in its fixed allocation Lifestrategy range, but investment strategist Ankul Daga is doubtful tactical decisions made by active managers will deliver superior results.
Long duration funds outperformed in the second quarter of 2018, despite investors’ ongoing concerns around interest rates.
Intermediaries are being urged to focus on total returns as the low-yield environment pushes income portfolios into higher risk categories.
Looking to exploit the inefficiencies inherent in credit markets, Royal London Asset Management will launch a monthly income bond fund later this year aimed at advisers and targeting an income of 5%.
Pimco’s fixed income funds attracted more than double the inflows of rivals over the last decade despite significant outflows after Bill Gross’ departure.
