Global neutral suffers under equity storm

This sector is comprised of funds that have a portfolio invested in the asset classes of equity, fixed interest and money market, with an equity content typically in the range of 30%-70% of the portfolio. This flexibility allows fund managers to limit their equity exposure in difficult market conditions, while achieving a proportion of the upside of bullish markets. The ability of these funds to move into fixed income instruments has not insulated them from the more difficult equity market conditions this year, and average returns in the sector have fallen by around eight percentage point...