What's in store for the unloved world of sterling corporate bonds?

Are corporate bonds set to make a comeback?

Laura Miller
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Sterling corporate bonds fell heavily out of favour in 2013 as investors left the sector in their droves. What happened? And what will happen next? Laura Miller finds out.

In 2013, fixed income funds – which were the best-selling in 2012 – saw their first ever net retail outflow. According to figures from the Investment Management Association (IMA), the worst-selling sector for the year was sterling corporate bonds, with an outflow of £1.7bn. This was the lowest net retail sales ever recorded for the sector since it launched in 2008. The sector was the worst seller for seven months during 2013. Wave breaks So what happened to make investors turn their back on sterling corporate bond funds? According to Aberdeen Asset Management senior investment m...

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