Share markets around the world have slumped as the effects of Covid-19 spread. Many have fallen between 25% and 30% from peak to trough.

Douglas said it had been notable that, starting from such a low interest rate base, there had not been a fixed income lift to offset as much of that drop as had been seen in previous downturns – particular compared to the defensive boost it had provided in the global financial crisis.

“The only asset class that has provided a return is cash … the official cash rate has dropped from 1% to 0.15% but we’ve still got Government bonds selling off.”

Greg Bunkall, at Morningstar, said bond funds had played a significant role in defending capital. “While traditionally you hoped bonds would be even more supportive – they are still doing a job here in limiting losses.”

Morningstar data showed that bond funds had lost an average 1.83% in the last week and almost 2% since the start of the month.

Murray Harris, head of distribution and KiwiSaver at Milford Asset Management, said the global financial crisis interest rate fall had been more significant – then, it involved rates falling from 7% or 8% to 1%.

But he said there was more than just interest rates that would drive fixed income returns – moves such as quantitative easing would also support the corporate bond market.

“We did see credit spreads blow out in the fear and panic selling but that’s coming to a stop now. Fixed interest has cushioned the fall as you would expect, compared to growth assets. It’s still had a dip because everything has sold off but it’s nothing near the extent of equity markets. It will recover.”