Fund managers shift to bonds

Fund managers have cut their forecasts of earnings growth by companies, prompting a shift from equities to bonds, according to Smith New Court's July survey of managers. The poll, by Gallup, found that the estimate for earnings-per-share growth this year fell from 9 per cent in June to 6 per cent in July.

The balance of managers planning to invest in UK gilts jumped from 16 per cent in June to 32 per cent in July, the highest level for two years.