Sector report: tough times ahead for UK bonds

For all the talk of global portfolios and emerging market debt, British investors remain wedded to the Sterling Corporate Bond sector. Sterling bond funds represent more than 40% of all fixed income assets. Strong total returns prompted healthy sales in 2012 and the sector topped the retail charts for six out of the 12 months. However, investors who have grown used to double digit returns are becoming disappointed. The sector was the worst seller in January this year, according to IMA statistics. The biggest drop in assets was suffered by Threadneedle's Short Dated Corporate Bond fund...