Sector report: UK Equity and Bond managers tackle market volatility

Slight changes in performance is all that separates the leaders and the laggards in diminutive sector.

A peer group of just 22 names means slight changes in performance divide the leaders from the laggards in the UK Equity and Bond Income sector. The sector tends to be a more flexible source of returns compared to UK Equity Income, as managers in the space are able to switch allocation away from stocks in times of equity market turbulence. However, this flexibility also means funds have less specialisation in each asset class. Several groups compensate for this by having two co-managers on their portfolios – ensuring there is expertise in both fixed interest and equities. Funds includi...