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Fidelity predicts corporate bond outflows for Isa season

Fidelity International is expecting outflows from the corporate bond sector over the next few months as money is redirected to global and strategic bonds.

In its latest Isa update, Fidelity notes that corporate bonds remain third top selling sector on its platform representing 9.5 per cent of sales for advised clients, while the cautious managed and UK all companies top the rankings. 

Head of UK Fund Partners Ed Dymott believes cautious managed and UK all companies will continue to top sales for the Isa season as investors dip their toes back into domestic equities.   He also anticipates growing interest in North America, China and Asia Pacific markets and out of favour Japan. 

He says: “2009 was the year of the corporate bond, but so far this year we have seen greater appetite for risk assets. Equities are back in favour again. Cautious Managed and UK All Companies have been the top selling sectors in the first couple of months of the year. We think Cautious Managed will continue to be a strong seller, with investors attracted to its balanced approach.”

Fidelity’s Isa Cash Park ranks first as top selling fund Isa fund on the platform followed by Invesco Perpetual’s high income fund and monthly income fund. 

The firm has noted a 63 per cent increase in lump sum Isa investments compared to the same time period last year and a 76 per cent increase in Isa applications from advised clients.

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