Moneyspider in the News
01/07/2007
Bonds exodus
Scotland on Sunday
Figures released by investment Management Association have revealed that private investors are leaving corporate bond funds in droves.
The UK corporate bond sector saw more investors cash out their funds than any other sector, with net outflows of £134m in May, and one performance monitoring group believes investors are absolutely right to be dumping these funds.
Moneyspider pointed out that investors in the poorest performing corporate bond funds, which it identified as being run by Nationwide Building Society, HSBC and Virgin Money, would have got better rewards in savings accounts.
It claimed £5,000 invested in the above providers' funds will have grown by £849, £849 and £600 respectively in the last five years. This is at least £100 less than £950 investors would have received had they instead put money in a Halifax's Web saver account for the same length of time.
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