Some 51% of income in the UK market comes from just 10 companies, and 68% comes from 20 companies. Most UK equity managers cluster around these familiar names, meaning the make-up of many UK equity funds is very similar.
Almost half of financial advisers expect the RDR to result in more capital being allocated to ‘star' fund managers, but its effect on other areas of product selection will be more muted, new research suggests.
Ignis' Chris Bowie believes total corporate bond returns will reach 5% in 2011 compared to the 10% highs achieved by the best performing funds this year.
Ignis' Chris Bowie has offloaded £200m of Santander debt on concerns over the impact of the sovereign debt crisis on the banking giant.
Government bond yields across peripheral Europe dropped sharply yesterday as the ECB kept open its bank emergency liquidity measures until at least the end of the first quarter of 2011.
Ignis has hired Michiel Timmerman from Aberdeen Asset Management to run its newly created £2.5bn multi-manager unit.
Peripheral European nations Ireland and Portugal could be forced to head to Continent's bailout mechanism after their respective bond yields soared to the highest levels since the creation of the euro.