IA Sterling Strategic Bond
Performance of sectors vs index over 10yrs
100 %
IA UK All Companies ( 78.6 %)
IA Sterling Strategic Bond ( 26.1 %)
UK Consumer Price Index ( 29.2 %)
80 %
60 %
40 %
20 %
0 %
-20 % |
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Mar13 |
Mar14 |
Mar15 |
Mar16 |
Mar17 |
Mar18 |
Mar19 |
Mar20 |
Mar21 |
Mar22 |
Source : FE Analytics
The third group , higher risk , comprises funds that are more credit focused and as such have a closer correlation with broader markets . Finally , Sánchez says the durationrisk category reflects the need for the most traditional component of a fixed income allocation : namely when equity markets are underperforming , economies are struggling and central banks start reducing rates , duration should provide a counterbalance .
Sánchez says investors in the first two groups did best in the fixed income sell-off last year as they suppressed credit and duration risk . However , with yields rising and interest rates set to peak , he expects to see more demand for duration risk , with funds in this category providing a “ core exposure ” to fixed income .
“ Extreme and extraordinary ” “ Last year was extreme and extraordinary ,” Sánchez adds .
Issue 93 - March 2023 / 53 /