UK fixed income funds suffer worst outflows since March 2020

Net £752m withdrawn in September

clock • 2 min read

UK-domiciled fixed income funds suffered their largest net outflow since March 2020 in September, signalling investors’ concerns about inflation and potential interest rate hikes, according to data from Morningstar.

Large redemptions from a handful of fixed income funds led the asset class to a £752m outflow - its largest since the "coronavirus crash" in March last year. Bhavik Parekh, manager research analyst at Morningstar, said: "Though this was only one tenth of the outflows seen in March 2020, it highlights investors' concerns about inflation and potential future interest rate rises by the Bank of England." Meanwhile, the GBP Corporate Bond Morningstar category had an outflow of £1.7bn, but the report highlighted that non-sterling-denominated bond categories - or global bond categories - did...

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