Strategic overtakes Corporate Bond as flexibility allows sector to flourish

SECTOR ANALYSIS

Strategic Bond sector allows funds to invest across fixed interest spectrum, causing popularity to soar above corporate bonds

Strategic bonds have soared in popularity this year, with investors attracted by their ability to invest across the fixed interest spectrum in what has been a volatile period for markets. Strategic Bond topped the IMA’s list of bestselling retail fund sectors four times in the first six months of 2010, with inflows peaking at £476m in March. By contrast, demand for corporate bonds has declined significantly, with the £ Corporate Bond sector suffering outflows in January, February and May totalling £532m. The IMA £ Strategic Bond sector includes 64 funds with a remit to invest at le...