The passive versus active argument has been running for years in the equities space, but has now spread to fixed income, where there have been a number of launches in recent months covering many different parts of the market.
Commentators argue simply tracking a bond index will lead to overexposure to the most indebted countries or companies. But investors trying to get the most out of their bond allocations by placing money with actively-managed strategic bond funds may have been disappointed over the past year too. FCA: Investors overlooking passives despite £109bn in expensive 'passive mirrors' In a bi-annual rebalance of FE's Crown Ratings, the IA Sterling Strategic Bond sector came out worst, with only three funds of the 73 in the peer group gaining five Crowns. FE said managers in the sector a...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- 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
