Bonds: What is the verdict on the active/passive debate?

'Investors need to tread carefully'

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...