Independent Financial Advisors like Enable acknowledge the fact that with continued equity market volatility many of the traditional ‘safe haven’ investment options like government bonds are offering historically low yields, so many investors are looking for alternatives.
Recent figures from the Investment Management Association for March however showed fixed income was the most popular asset class as a whole for the seventh month in a row with net retail sales of £660m. Also, the IMA Sterling Strategic Bond sector was the best selling of all IMA sectors for the month.
The sector, which contains funds that invest at least 80 per cent of their assets in sterling denominated fixed interest securities - or securities that are hedged back to Sterling - recorded net retail sales of £366m, the highest figure since April 2011, and significantly above the monthly average for the previous 12 months of £211m. Investor inflows into these funds mean it is the second largest fixed income sector at £25.6bn, second only to the £52.8bn Sterling Corporate Bond sector.
Andrew Sutherland, head of credit and aggregate at Standard Life Investments and manager of the £92.1m Standard Life Investments Strategic Bond fund, says most people think of bonds as having very few differences but he adds: “There’s a vast amount of difference in terms of risk and performance in bonds. You’ve got high yield which is very cyclical and high yielding, but you’ve also got your government bonds and things like index-linked and investment grade corporate bonds. So there’s quite a lot of variety and they all do different things at different times.”
Strategic bond management with Enable’s IFA’s could help you make the most of your wealth.
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