Managers look further afield for returns to spice up portfolios

With gilts under pressure and credit spreads narrow, difficult times are ahead for fixed-interest investors, according to Simon Surtees, co-head of fixed income at Gartmore. Surtees says there is little scope for further spread tightening and the surge in private equity activity has introduced an added element of risk to corporate bonds. Against this backdrop managers are also looking at new ways to generate returns. "To spice up their portfolios and attract investors, a lot of fixed income managers are using dynamic asset allocation mandates across all segments of the fixed income mark...