fixed income

Net retail sales of UK domiciled funds reached £2.1bn in April, the highest level since April last year and well above levels seen over the last nine months.

Mike Riddell, M&G's top performing bond fund manager, has urged investors to brace themselves for more pain in markets in the short term as the Greek crisis continues, with safe haven bonds set to see yields fall further.

UK government bonds are hugely expensive but 10-year yields may yet move down towards 1.5%, according to Henderson's head of retail fixed income John Pattullo.

Alliance Trust Investments has poached SWIP bond manager Juan Valenzuela to head up a new fixed income fund.

Italy sold €5.95bn worth of bonds today after Standard & Poor's downgrade of Spain reignited fears over the health of European peripheral economies.

FIXED INCOME

Despite its roots across the Atlantic, Franklin Templeton is best known in the UK as an emerging markets specialist and, since its acquisition of Rensburg, for its UK equity capabilities.

AXA IM is looking to launch a Universal Inflation Bond fund and an Emerging Market Short Duration fund this year as it extends its fixed income range.

Spanish borrowing costs soared following a €2.5bn auction on Wednesday, which failed to meet its target.

Guillermo Osses, manager of HSBC's $1bn GEM Debt Total Return fund, has reduced risk in his portfolio, expecting emerging market debt to pull back after a strong start to the year.