Bonds

Managed by Jeff Kernagis

Modern and cost-efficient

Had previously seen significant outflows

Maximum six year duration

Re-rated to 'selective default'

Will launch range of US strategies

Focusing on global high yield

Increasing correlation between bonds and equities, rising interest rates, increased geopolitical risk and potentially overheating markets appear to have eroded many of the diversification benefits of the 60:40 balanced portfolio.

Short US equities

More than a year after the UK Brexit referendum, sterling corporate bond yields remain close to an all-time low, writes Mateusz Malek, head of bonds research at Killik & Co.