Trustnet Magazine 91 January 2023 | Page 53

IA Sterling Corporate Bond

PAYBACK TIME

Following last year ’ s shakeup , yields on IA Sterling Corporate Bond funds suddenly look attractive once more . Adam Lewis finds out how to approach the rejuvenated sector

It would be fair to say investors in both UK equities and bonds endured a difficult 2022 . Rising inflation and interest rates saw the diversification benefits of holding the two asset classes evaporate , as both fell in tandem .
While the IA UK All Companies sector fell 9.1 %, IA Sterling Corporate Bond , which is supposed to be less volatile , was down 16.1 %. In such a tough environment for risk assets ,
Issue 91 - January 2023 / 53 /