Strategic Bond sector mimics equities as FTSE correlation rises

clock • 3 min read

The IMA £ Strategic Bond sector was more closely correlated than UK small-cap funds to the FTSE 100 last year, data has revealed.

Statistics from Lipper produced for Investment Week show the sector had a correlation coefficient with the FTSE of 0.84 in 2011, well above the three-year figure of 0.66 and higher than the 0.83 correlation seen in 2008 at the height of the financial crisis. That compares with a correlation of 0.81 for the IMA UK Smaller Companies sector and 0.84 for the North America sector in 2011. By contrast, the UK Gilt sector had a correlation of -0.31 last year. But with government bonds seen as fully valued, 2011 saw many strategic bond managers up credit weightings. Attractive spreads pr...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

IA CEO calls for 'inclusive investment environment' to help UK adults tap into 'investment growth'

IA CEO calls for 'inclusive investment environment' to help UK adults tap into 'investment growth'

Urges boosting financial literacy

Sorin Dojan
clock 20 December 2024 • 3 min read
Outlook 2025: A year in review with Investment Week

Outlook 2025: A year in review with Investment Week

The IW team looks back at a bumper year

Investment Week
clock 20 December 2024 • 1 min read
Stories of the Week: BoE holds interest rates steady; Number of UK companies mulling moving their listing doubles; FCA launches consultation on private stock market

Stories of the Week: BoE holds interest rates steady; Number of UK companies mulling moving their listing doubles; FCA launches consultation on private stock market

Bank of England, FCA, and UK companies: The biggest stories from the world of investment and asset management this week

clock 20 December 2024 • 1 min read
Trustpilot