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Fixed income funds lose £891m in Q3

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Fixed income funds saw £891m of outflows in the third quarter, according to the latest data from the Investment Association.

The figure reflects a huge turnaround in fortunes for the vehicles during 2015. In Q1 fixed income vehicles enjoyed £379m of inflows, while in Q2 outflows were just £96m.

September was the worst month for fixed income funds since June 2013, with the products recording net retail outflows of £515m during the period.

Equity was the best-selling asset class for the fifth consecutive month in September with net retail sales of £1.1bn.

Asian equity funds were the only equity sector to see an outflow in net retail sales in September at £129m. It is the fifth consecutive month Asian equity funds have shed assets.

Meanwhile, the UK Equity Income sector remains the top-selling sector with net retail sales of £445m, followed by Targeted Absolute Return with net retail sales of £323m.

Total net retail sales in September were at £1.1bn from £825m one year ago.

Investment Association interim chief executive Guy Sears says: “Net retail sales went back above the £1bn mark in September with investors directing the majority of their money into equity funds – UK equity in particular.

“Property and Mixed Assets still seems to be favoured if we look at the top five best-selling sectors. However, fixed income continues to suffer the highest withdrawals we have seen for this asset class for some time.”

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