Wealth manager sentiment towards bonds reaches highest level since 2009

Positive sentiment towards bonds from wealth managers is at its highest level since 2009, a new survey has found.

Research from Asset Risk Consultants found that positive sentiment towards the bond sector had risen to 53%, up from 2% at the beginning of 2022.

The survey also reported positive sentiment towards the healthcare, financials and energy sectors, while managers were negative on consumer discretionary, private equity and commercial property.

There was also a significant negative swing in the outlook for the US dollar compared to a year ago.

ARC's Private Client Indices also estimated that the average portfolio fell 9.8% in 2022, based on data from more than 350,000 investment portfolios and more than 140 investment managers.

Graham Harrison, chair at ARC, said: "For the first time in over a decade, investors need to be paying close attention to the amount of money they invest in bonds alongside the shares they hold in companies.

"For more than ten years, investing in bonds has given very little yield or interest income — this has now changed. Bonds are back and subsequently, so is the traditional balanced portfolio."