Investors should continue to invest in fixed income products, say Gartmore fund managers, because despite recnt price swings in the bond market and increasing interest in equities, it has been on the back of historically good returns and portfolios need to maintain balance.
Alix Stewart, manager of the Gartmore Corporate Bond fund and Richard Hodges senior investment manger responsible for European fixed income mandates, both take the view that a broad range of factors need to be taken into account when looking ahead at what may happen in the market. A common factor to both UK and European focused funds is the forecast decrease in supply of corporate bonds. Companies have been cutting debt and improving balance sheets in the past year as quarterly profits have continued to improve beyond analysts’ expectations. Additionally, in Europe a big wave of eu...
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