Bond sell-off fails to stifle fixed income flows while equities shed £1.6bn

Passive funds continue to dominate

Valeria Martinez
clock • 2 min read

The global fixed income market rout failed to deter flows into bond funds in September, while investors continued to redeem their equity holdings.

Bond funds have attracted £11.6bn in the first three quarters of the year, while investors have redeemed £15.2bn from equity strategies over the same time period, according to the latest LSEG Lipper UK Fund Flows report. Inflows into bond strategies have not been deterred by lacklustre returns, as UK market bond fund returns have remained relatively flat year-to-date, said Dewi John, head of research for the UK & Ireland at LSEG Lipper. Appetite for bonds not abating in face of 'exaggerated' 5% Treasury yields "This was supposed to be the year for bonds," he added. "Shame that no-o...

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