Revealed: Multi-managers' favourite funds and strategies in volatile Q1

Fixed income 'surprise winner'

Managers of income-focused multi-manager funds raised their exposure to investment grade bonds in Q1, with the average fund increasing exposure by 2.9% to 19.7%, a four-year high.

Research from Harrington Cooper shows that bonds were "a surprise winner" during the three-month period, which saw gilt yields climb on the back of a sell-off in global bonds as investors grew bullish on the world economy and prepared for increasing inflationary pressures and tighter monetary policy.  In mid-February 10-year gilt yields peaked at 1.7% before falling back to 1.4% at the end of March. Allocations to investment grade bonds also reached a four-year high across balanced funds, rising by 1.4% to 12.8%, taking overall fixed income exposure higher.  Letter from America: Co...