European fixed interest sector performs poorly

Professional Adviser
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European fixed interest funds outperformed their equity counterparts last year despite widespread po...

European fixed interest funds outperformed their equity counterparts last year despite widespread poor positioning of funds in the sector. The majority of funds in the offshore European fixed interest sector underperformed all major bond indices over the 12 months to the end of October 2002, according to Standard & Poor's examination of the sector. S&P said changing growth expectations caught many fund managers on the hop. Consensus was low, with many managers loading up with government bonds to negate risk, while others increased diversification to combat volatility. S&P noted: 'Seve...

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