Top-rated managers call time on bonds

Only 12% of the UK's most highly rated fund managers believe bonds will outperform equities over the next 12 months, according to a survey by Chelsea Financial Services.

An overwhelming 88% of managers on Chelsea’s Leaders panel from fund houses including Artemis, Fidelity, Jupiter and BlackRock say equities will come out on top. Nearly the same number (86%) believe the FTSE 100 will finish the year at a higher point than its August 5 level of 4630. The majority (78%) also predict the UK would be out of recession at the beginning of 2010. There was slightly more divergence of opinion on the prospects for gilt yields over the next 12 months with 71% expecting a rise, 24% anticipating a fall and 5% forecasting no change. However, the future direc...