VIX

Global asset allocators are urging investors to look past the VIX index's fall to a five-year low last week, and shield assets against a further bout of volatility in the coming months.

Robin McDonald, co-head of the multi-manager range at Cazenove, has said investors should not hold out for further stimulus from the Federal Reserve as he believes it has ceased its policy to weaken the US dollar.

VOLATILITY

Fund managers are snapping up cheap portfolio insurance ahead of an expected market pull-back, after the VIX index hit pre-recession lows in March.

The so-called ‘fear index' is increasingly serving as an indicator of future high yield bond performance, according to Dave Bowen, manager of the $3.5bn Muzinich Short Duration High Yield fund.