Which bonds funds can still produce alpha over 12 months?

Global bond funds suffered the worst outflows of all asset classes in June and bond indices fell sharply after comments from the Federal Reserve signalling the end of quantitative easing.

But there are still bond managers able to deliver alpha over the next 12-month period, according to a new research tool developed by Albemarle Street Partners, ‘Alpha Quest'. Global bond funds suffered their fourth worst months in 20 years during May after Fed chairman Ben Bernanke said the central bank may slow its bond buying programme. Over the month from 21 May, when Bernanke made his comments, to 20 June every fund in the IMA £ Strategic Bond and £ Corporate Bond sectors posted a negative return, according to Morningstar data. While some managers have managed to recover the lo...