Corporate Bond Funds Hit Hard by Credit Woes

We look at the laggards and the stalwarts among sterling corporate bond funds.

Christopher J. Traulsen, CFA 8 December, 2008 | 11:45AM
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It's no secret that credit quality and sector positioning have dictated winners and losers in the IMA £ Corporate Bond sector thus far in 2008. Funds that have made large bets on lower rated issues or financials have taken a beating and those who have stayed well up the quality scale are faring much better.

We noted a couple weeks back that Stephen Snowden's Old Mutual Corporate Bond is the worst performer in the group on a year to date basis, but he's not the only straggler. Other funds with large losses include: AXA Sterling Corporate Bond (now run by Theo Zemek following Neil Sutherland's departure, and do

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Fidelity MoneyBuilder Income37.86 GBP0.03Rating

About Author

Christopher J. Traulsen, CFA  is director of fund research, Europe and Asia, Morningstar.