Rathbones' head of fixed income Bryn Jones has railed against passive fixed income funds outselling their active counterparts, despite the "significant underperformance" of passive fixed income funds, claiming retail investors do not understand how they work.
Jones denounced the industry's approach to passives in the fixed income sector as data released by Rathbones Group shows the Ethical Bond fund, managed by Jones, has outperformed fixed income holdings in well-known passive funds over one, three, five and ten years. European ETF flows smash previous record in 2024's final quarter Over three years, Rathbones' Ethical Bond fund returned 3.2% compared to losses of 2.1% and 3% by the iShares UK Corporate Bond Index and the Vanguard UK Investment Grade Bond index respectively. However, active fixed income funds across all sectors recorde...
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