Corporate bonds swing out of fashion

Corporate bond funds seem to be going in and out of fashion quicker than woolly jumpers.

Having surged to investors’ number one spot in August, statistics from the IMA today showed that in November last year they were the second least popular sector, with net outflows in the month totalling £215m.

After record inflows in 2009, the sector had a bad start to 2010, when in January investors withdrew £228m from the peer group, its biggest ever monthly outflow. The outflows continued into February, before moving into positive territory where they remained for the rest of the year. In July popularity surged with the sector taking second spot in the rankings, followed up by August’s number one ranking. (article continues below)

In September the sector slipped back to second, before sliding to seventh in October. However the peer group still recorded net retail sales of £148m, making November’s outflows somewhat of surprise.