Giant bond funds still popular in July: FundsNetwork
FundsNetwork users flooded into fixed income funds run by Fidelity and M&G during July, in spite of growing concerns about liquidity in the bond market.
Fidelity’s £3bn MoneyBuilder Income fund, managed by Ian Spreadbury (pictured), was the most popular fund in July according to latest figures from FundsNetwork. Mr Spreadbury’s £1.1bn Strategic Bond fund was the fourth best selling product.
In addition, Richard Woolnough’s £8.1bn M&G Optimal Income fund and £5.2bn M&G Strategic Corporate Bond fund ranked sixth and seventh in the best selling list respectively. M&G last month announced it was to limit inflows into Mr Woolnough’s funds, primarily through negotiating with larger clients.
The FSA has also written to bond managers to ascertain how trading conditions may affect their ability to meet redemption requests.
The IMA Sterling Corporate Bond and Sterling Strategic bond sectors were among the top selling sectors in July, FundsNetwork said. The best selling sector overall was the Mixed Investment 20-60% Shares sector.
Also among the best selling funds were Neil Woodford’s £11.7bn Invesco Perpetual High Income fund and John Chatfeild Roberts’ £3.7bn Jupiter Merlin Income fund.