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Bond funds look to capital protection

23 March 2010

Managers of global bond funds are placing increased emphasis on capital preservation

Read more: global bond funds capital preservation S&P

Managers of global bond funds are placing increased emphasis on capital preservation over the traditional objective of relative benchmark performance, according to Standard & Poor’s Fund Services in its latest review of the sector.“We think this pattern is set to continue for two main reasons,” said James Mashiter, lead analyst at S&P Fund Services. “Firstly, as Ucits III sophistication becomes more commonplace, managers can more easily reduce volatility and limit drawdowns with derivative overlays. Secondly, fund management groups...


 

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