Henderson's Formica: Equity rally not being driven by bond bears

Andrew Formica, chief executive of Henderson Global Investors, has tipped the rally in markets to continue from here as flows from bonds into equities finally start to increase.

Formica (pictured), whose group runs a number of popular funds focused on both asset classes, said the current rally taking place in equity markets had been driven by a lack of alternatives to equities, not money moving out of bonds. He said the much mooted "great rotation" out of fixed income and into equities has not yet materialised, and could help push equity market valuations in the UK and abroad much further. "We are still seeing positive flows into bond funds, and we have not seen a wholesale switch out of bonds," he said. "This rally has not been caused by a liquidity flow ...