View more on these topics

Bank of England rate rise fails to stem bond fund inflows

Fixed income was the most popular asset class for UK investors in November despite the Bank of England raising interest rates and stock markets remaining buoyant, Investment Association figures show.

Fixed income attracted over £2bn worth of sales in the month, while mixed asset and equity were the second and third most popular assets classes, attracting £1.2bn and £713m respectively.

Total funds under management across the industry were £1.2trn.

Investment Uncovered: ‘A golden age for bonds’

IA fund market specialist Alastair Wainwright says it was the sixth month in a row fixed income topped the sales charts.

“UK investors preferred fixed income funds in November, despite the Bank of England raising base rates by 0.25 per cent.” Wainwright says Sterling Strategic Bond was the best-selling sector with £1.5bn of new retail money.

When it comes to equity, UK-focussed funds continue to suffer with £188m net outflows in November, in contrast to the top-selling region, Europe, which enjoyed £348m inflows. Europe ex-UK funds attracted £291m.

Asia funds were the next best-selling with net retail sales of £229m, followed by £213m that went into Japan. Global funds were the only other regional equity fund besides the UK to suffer net outflows, albeit only £4m.


Investors pour into bond funds as UK equity income sees outflows of £444m

UK investors have continued their flight to safety with fixed income the best-selling asset class in October, according to the Investment Association. Fixed income saw £2bn in net retail sales in October, while the Sterling Strategic Bond sector was the best-selling sector with net retail sales of £1.6bn. Outflows continued from the UK equity income […]


Why bond managers are positive on ‘rising stars’

Corporate bonds that fell into high yield just under two years ago are now on their way to investment grade, becoming what are known as “rising stars” and creating opportunities for bond managers. In Q1 2016, 51 companies became so-called “fallen angels”, dropping from investment grade to high yield, compared to 45 in the whole of […]


Fidelity platform business posts £16m loss

The company that runs Fidelity’s platforms has posted a loss of £15.9m for the 12 months ended 30 June 2017. Annual accounts posted to Companies House on 22 December for Financial Administration Services, which is the company that operates FundsNetwork and Fidelity Personal Investing, show the loss grew from £15.5m in 2016. The accounts document […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment