Corporate bonds top fund sales for August
30 September 2010 / by Paul Dicken
Corporate bonds were the most popular investment in August, according to the latest sales data for the investment management industry.
Figures published by the Investment Management Association on 29 September showed inflows to funds overall continued to be strong with net retail sales at £2.3billion.
Activity in the ISA market was the lowest in August compared to any other month this year but net sales were £16million higher than August 2009.
Bonds were the leading asset class, with net retail sales at £1.2billion, following figures for July showing a similar picture. Surpassing the £1billion mark, net sales returned to their peak level from December 2008 to May 2009.
The IMA defines the corporate bond sector as a fund investing at least 80 per cent of their assets in corporate bond securities with ratings of BBB minus or above, as measured by Standard & Poors or an equivalent external agency.
Equities were the second highest selling asset class, with sales of Absolute Return funds pushing the sales figure for assets classed as ‘other’ up to £328million from £58million in July.
Property funds remained unpopular with net sales down on the previous month.
In terms of how funds were sold, fund platforms maintained their 37 per cent market share, with other intermediaries such as wealth managers and stockbrokers recording a market share of 52 per cent.
Direct channels sales were up one per cent in August with 11 per cent of sales.
Some commentators have speculated that bond prices may currently be overinflated, with a bubble forming as investors pour into the market.
Retail bond market
This week the London Stock Exchange announced an increase in the number of instruments available for trading on its Order book for Retail Bonds.
Evolution Securities are acting as the ‘market maker’ offering private investors continuous two-way prices in bonds issued by companies like HSBC, Barclays, FirstGroup and EDF Energy.
Pietro Poletto, head of fixed income markets at the Exchange, said: “This flood of new bonds marks a significant milestone in our mission to open up the bond market for private investors in the UK.”
He said the moves gave transparent access to nearly 150 gilts (government bonds), supranational and corporate bonds through the retail bond market.
© Fair Investment Company Ltd
| Product Name | ISA Option | Income Yield | More Info | |
|---|---|---|---|---|
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Investec FTSE 100 Income Deposit Plan |  |
3.50% per annum |
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| 6 year capital protected deposit plan paying a potential income of 3.50% annually or 0.28% monthly. Also available for Cash ISA and Cash ISA transfer. | ||||
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Invesco Perpetual Corporate Bond Fund | |
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|
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| One of the UK’s most popular income funds, the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge. Click here to view latest Fund Facts » |
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M&G; Corporate Bond Fund | |
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| The M&G; Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge. | ||||
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Jupiter Merlin Income Portfolio | |
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| The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Charge. Click here to view latest Fund Facts » |
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The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.
| Product Name | ISA Option | Maximum Potential Return | Term | More Info | |
|---|---|---|---|---|---|
|
FTSE 100 Enhanced Kick Out Plan | |
10% per annum |
Up to 6 years |
More Info > |
| Structured investment plan with the potential to mature after years 1, 2, 3, 4, 5 or 6. If the plan matures early it will return 10% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer. | |||||
|
FTSE 100 Kick Out Deposit Plan | |
6% per annum |
Up to 6 years |
More Info > |
| Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 6% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer. | |||||
The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.
| Service | ISA Option | Minimum Investment | More Info | |
|---|---|---|---|---|
 |
Share Trading Account Plus | |
More Info > | |
| Trade in a wide variety of investment options including International Equities, Warrants and Covered Warrants. Frequent traders get a reduced rate of £8.95 | ||||
The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.
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