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...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
