Asset Allocator's Soapbox: Marianne Weller

With interest and saving rates at historic lows and the FTSE All Share yielding 3.42% and 10 year UK treasury gilts just 2.88%, both as of 27 August, the challenge for IFAs and their clients is to source a good yield, beating inflation (CPI), without taking excessive risk. One solution is the corporate bond sector. The IMA requires that funds in this sector have at least 80% invested in investment grade bonds (AAA-BBB rated) with the fund managers able to invest the other 20% where they see value. The corporate bond sector has been widely seen as an area used by investors seeking yiel...