Rathbones Research Highlights Demand for Active Fixed Income Management

Research published by Rathbones Asset Management surveyed 100 independent financial advisers, discretionary fund managers, and private banker fund selectors regarding fixed income strategies. The findings showed that 94% of respondents viewed strategic bond mandates capable of shifting between government bonds, investment grade credit, and high yield debt as attractive. Bryn Jones, head of fixed income at Rathbones Asset Management, commented on the findings, noting that fund selectors recognize active management plays an important role in bond portfolios.

The survey found that 81% of respondents expect active managers to play a larger role in fixed income portfolios over the next two years due to ongoing uncertainty about interest rates and inflation. Specifically, 27% of fund selectors consider duration management essential, while 91% agreed that active credit managers are best placed to mitigate asymmetric downside risk amid narrow credit spreads.