Richard Peirson, one of the most consistent and long-standing mixed asset managers, is favouring cash over bonds in his AXA Framlington Managed Balanced fund. Having maintained a larger position in cash than bonds throughout 2012, he is concerned that a 'bubble' has formed in government debt and has less than 10% invested in fixed interest in the £400 million fund.

He also harbours concerns that, given these risks, the retail distribution review's proposal that more of investors assets be invested in bond heavy mixed asset funds is a mistake.