Fixed-income funds holding corporate bonds - which now boast yields of more than 9 per cent in some cases - are attracting attention as investors continue to hunt for alternatives to equities and low-paying deposit accounts.

"For the first time in many years, it seems more attractive to buy corporate bonds than to have money in a savings account," says Ian Robinson, director of UK credit at F&C. "Over the next few quarters, you will see a lot of people seeking alternative income and corporate bonds are the place to look."