View more on these topics

‘Bond bull is beginning, not a bubble’

M&G bond manager Richard Woolnough has rejected views that a bond bubble is forming.

At Cazenove Capital Multi-Manager Live, he said there are three characteristics that define a bubble in the bond market, with only one applicable at present. He said there has been a large increase in inflows into the sector but the recent performance history of the asset class and pricing of the market both go against the notion of a bubble.

“The asset class has to perform well for a number of years and that is the definition of a bubble, the returns for corporate bonds have been poor for the past three or four years as credit spreads have widened, coupled with lower inflation and interest rates. The asset class also has to look about as expensive as it has ever looked and it is arguably the cheapest it has ever looked. What we are looking at is the beginning of a bull market, the asset class is cheap before money flows in and assets start to rise. I think we are currently in that phase.”

Cazenove Capital head of multi-manager Marcus Brookes says: “I would agree with Richard for much the same reasons. There may be value but we have not seen this extraordinary outperformance.”


Dividend test

The equity income area of the market is drawing investor interest but questions remain over just how much dividends can prop up total returns and whether the payouts from UK companies can be sustained in a worsening economic environment.

NU scheme aims to help graduates become advisers

Norwich Union has set up a new adviser training programme in a bid to encourage more graduates to take up a career in financial advice.The firm says its future adviser programme is designed to attract graduates at a time when the challenges of the retail distribution review could potentially see the number of advisers fall […]

Concerns at Liontrust duo replacements

Advisers have raised concerns over the experience of Liontrust’s replacements for star fund managers Jeremy Lang and William Pattisson.Gary West and James Inglis-Jones have taken on management of the Liontrust first income and first large-cap funds while Anthony Cross and Julian Fosh now manage the first growth fund.Chelsea Financial Services managing director Darius McDermott is […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm