Data Points To Outflows In Recent Months, Although Buy-Side Names Flag Interest/Deployment

Conflicting weekend commentary in the UK press re: capital deployment in bonds, although there is seemingly a difference in the timeframe of trackable data (pointing to outflows) and comments from some of the buy-side pointing to capital deployment in gilts.

• A weekend article in the FT noted that “Risk-averse UK investors have retreated from fixed income and bond funds as the turmoil in the bond markets on both sides of the Atlantic dented confidence… Figures from the Investment Association show that retail investors pulled a net £356mn from fixed income funds in August. Funds network Calastone separately recorded a similar outflow of £330mn from bond funds in August, followed by a further £128mn of outflows in September.”
• Conversely, an article in Telegraph pointed to “the UK’s biggest long-term savings and retirement business has started buying gilts for the first time in two years despite a renewed bout of bond market turmoil.”