New figures from the Investment Management Association (IMA) have revealed that global bond sales have reached an all-time high, with net retail sales for July standing at £2.2 billion.
This continues the trend of high sales seen this year, according to the IMA, with Isa sales up by £38 million on July last year to stand at £267 million and funds under management standing at £509.2 billion, which is up by four per cent since June 2010.
Jane Lowe, director of markets at the IMA, said that investor appetite for bonds was "buoyant" in July, thanks to global bonds sales being the highest on record.
"Although the first wave of investment in 2009 was heavily concentrated in UK bonds, we are now seeing a second wave of investment that is well diversified across UK and global fixed income," she noted.
Meanwhile, a new study carried out by JP Morgan Asset Management found that, with government bond yields at record lows and the outlook for equities unclear, high yield bonds and high dividend equities, along with convertible bonds, could be an attractive alternative.
Posted by James Harrison 