Daily Archives: March 10, 2009

Pauline Skypala

An analysis by Rob Arnott of Research Affiliates suggests the equity bias of most fund managers might be totally misconceived. In a piece to be published in a forthcoming issue of the Journal of Indexes, he points out that, in the US at least, bonds have beaten equities not just over the past 10 years but the past 40 years, since 1969.

John Authers ruminated on the implications for investors in his column on Saturday. But asset managers need to take a long hard look too. Have they been betting on the wrong asset class all these years? Or is the analysis the sign that markets are about to turn – the death of the equity has been forecast before sharp upturns in the past.

Anyone who thinks the latter to be true is probably clinging to what has to date been regarded as conventional wisdom like a drowning man to a life raft.

About the blog

FTfm is no longer updated but it remains open as an archive.

FTfm's specialist writing team offer their insights into the global fund management industry.

About the authors

Pauline Skypala has been editor of FTfm for four years having previously been deputy personal finance editor. She joined the FT in 1999 and has been writing on savings and investment issues throughout her career.

Steve Johnson, FTfm deputy editor, has been a journalist for 17 years, 10 of which have been with the FT.

Sophia Grene, reporter on FTfm, has been a financial journalist in print and online for 12 years.

Ruth Sullivan has worked as a financial/business journalist and foreign correspondent and for the past 10 years has been at the FT.