Investors find safe haven in corporates

The corporate bond sector has posted double-digit growth over the three years leading up to may with aegon extra income the top performer

Corporate bond funds remain a safe haven for investors, with some 94% of the sector posting double-digit growth over the three years to the end of May. Moreover, all funds in the sector delivered positive growth over the aforementioned period, resulting in a sector average return of 14.32%. The UK corporate bond sector's rise in popularity over the past two and a half years has coincided with a period of underperformance from global equity markets. The resultant heavy inflows into fixed interest have led to a number of fund launches targeting both the retail and institutional spaces,...