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Corporate bond funds stay favoured

Investor appetite for corporate bonds remains strong approaching the second half of 2009, although inflows have started to slow. Corporate bond funds dominated the Cofunds platforms in May, accounting for a quarter of net sales.

M&G knocked its own Corporate Bond fund off the top spot with another of its fixed income offerings – Strategic Corporate Bond, also managed by Richard Woolnough. This was a reversal of the two funds’ positions in April.

Invesco Perpetual Corporate Bond, M&G Recovery, and Invesco Perpetual High Income took third, fourth and fifth places respectively.

Invesco and M&G’s combined sales accounted for 60% of total net inflows last month, owing to the ongoing popularity of corporate bonds and fixed income.

Russell Lancaster, the director of fund manager relations at Cofunds, says despite the enduring popularity of these funds, inflows are slowing from their peak in the first quarter of this year.

He also says the monthly sales figures show a corresponding gain in sales of Cautious Managed and Balanced funds, suggesting the start of a move away from corporate bond funds.

Meanwhile, regional equity and emerging market funds began creeping into the top 50 best-seller list, with Lancaster highlighting the resurgence of Asia Pacific, Bric (Brazil, Russia, India and China) and Japan funds.


The Lion’s share

Stockmarkets have rallied strongly since the beginning of March. This is certainly a welcome change after a dire year in 2008 but I would not be surprised if markets paused for breath at this stage. Whether or not this rally can be sustained is the big question in investment at the moment.

No real recovery until 2010

The British economy is starting to stabilise but there will be no real recovery until at least 2010, according to the Confederation of British Industry (CBI).The organisation suggests that the first three months of this year will turn out to be worse than subsequent quarters. Richard Lambert, the CBI’s director-general, says: “Our forecast today tells […]

Bramdean Alternatives terminate Petersfield takeover talks

The board of the Bramdean Alternatives fund has terminated takeover talks with Petersfield Asset Management, a company owned by Nicola Horlick.In an announcement to the London Stock Exchange, the board of Bramdean Alternatives said Petersfield has not withdrawn the approach it made on April 30, which means the company effectively remains in an offer period.There […]

Ballot lessons

I am proud and grateful to have had the endorsement of the great British public since I started my succesful IFA practice in 1972. Yes, far longer than most current MPs and in many cases long before many of the little beauties were born.


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