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Strategic bond funds top sales charts

Strategic bond funds top sales charts

Strategic bond funds were the most bought by advises on the Fundsnetwork platform in January.

The Investment Association (IA) Strategic Bond fund sector is for fixed income funds that have a more flexible mandate than funds in other fixed income sectors, which often confined by the types of bond they can buy.

Minesh Patel, an adviser at EAF Solutions in London, said he prefers to get bond exposure from strategic bond funds, particularly in the current climate of political uncertainty.

The sector next most bought were the Mixed Investment 40-85 and 20-60 sectors.

No sector investing solely in UK equities made the top ten of the most bought list.

The most bought fund by advisers on the platform was Fundsmith Equity. This is a £13bn global equity fund run by Terry Smith (pictured).

This is the second best performer in the IA Global sector over the past three and five years to 27 February. It has returned 145 per cent over the past five years, compared with 65 per cent for the average fund in the sector.

The most bought fund by advisers acting on behalf of Isa clients in January was the £400m BlackRock UK Absolute Alpha fund, while the £787m Premier Multi-Asset Growth and Income fund was the most bought fund for pension clients.    

David.Thorpe@ft.com