Investors Sell £9bn Bond Funds

Investors sold more bond funds than any other asset class throughout the year. But which fund turns out to be investors' favourite in 2015?  

Karen Kwok 22 December, 2015 | 3:57PM

Investors sold out of more bond funds than any other asset class this year, with net outflows of £8.7 billion. Worst hit were corporate bond funds, which saw outflows of £6.2 billion according to Morningstar Direct data.

In November alone investors sold out of £701 million worth of corporate bond funds, although this is far from the outflows of January where funds recorded outflows of £2.6 billion.

The least popular fund of the year was M&G Optimal Income, with outflows of £6.2 billion. The fund is rated Silver by Morningstar. Fund analyst Ashish Dash recently commented that the primary reason for these has been the fund’s underperformance over the last two years.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASI Global Absolute Ret Strat R Acc79.87 GBP0.15
Invesco Global Tgtd Rets UK Acc56.38 GBP0.39
LF Equity Income A Sterling Acc3.38 GBP0.00
M&G Global Dividend GBP A Acc374.65 GBP0.50
M&G Optimal Income GBP A Acc231.06 GBP0.09

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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