Managers begin to take on more risk in portfolios

IMA £ High Yield sees shift from relatively lower-risk BB-rated companies to take advantage of overly conservative ratings of 'safe' companies

The IMA £ High Yield sector saw a spike in consumer demand for fixed interest products towards the end of Q1 this year. The sector saw net inflows of nearly £70bn in March, following up from around £19bn in February, according to Investment Management Association figures. Investors had already expressed increasing interest in lower risk bonds this year, with gilt demand jumping on the Government's quantitative easing buybacks. The £ High Yield sector returned an 8.3% average performance in the three months to 11 May, according to Morningstar, but this was down 15.8% over the year and ...