Fund managers running balanced mandates – multi-asset funds that invest across equities and fixed income – posted their best returns since 1975 in the three months to September 30, with an 18.4% rise; this performance comes on the back of strong rallies in the equities and fixed income markets.

Balanced funds - once the investment of choice for many UK pension funds - have fallen out of favour in recent years. However, the performance measurer BNY Mellon tracks 50 funds with around £16.8bn (€18.7bn) under management.