Corporate bonds remain flavour of the month with investors

17 June 2009 / by Rebecca Sargent
Corporate bonds accounted for a quarter of net investment product sales in May for independent platform Cofunds.

According to Cofunds' statistics, the M&G Corporate Bond Fund, Invesco Perpetual Corporate Bond Fund, and the Invesco Perpetual High Income Fund were key players in the market.

In fact, the domination of corporate bonds meant that Invesco Perpetual and M&G accounted for 60 per cent of net sales in last month's Cofunds sales charts.

However, as rumours of recovery scream louder, experts at Cofunds believe that investors may start to move away from the relatively safe haven of corporate bonds.

Commenting, Russel Lancaster, director of fund manager relations for Cofunds said: "Although May saw the continued dominance of corporate bonds, the rush into these funds is starting to slow from the heights of the first quarter of 2009.

"A corresponding gain in Cautious Managed and Balanced funds can also be seen from the monthly figures, highlighting the beginning of a move away from corporate bonds," he added.

Another recent investment trend picked up by Cofunds is the return to equities and emerging market funds, as they re-entered its top 50 table.

"It is clear that despite the general economic woes, confidence is re-emerging in the markets with investors starting to re-enter equity markets," Mr Lancaster concluded.

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