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Global bond is top sector with record business

The Investment Management Association has revealed that global bond was the highest-selling sector in September and in the third quarter as a whole.

The IMA’s fund statistics to the end of September show funds under management in the global bond sector grew to a record £542.6bn.

The sector has seen increasing interest as advisers look for alternatives to gilts and investment-grade bonds.

Some IFAs have expressed concern over the two asset classes owing to monetary easing and possible inflation, according to a recent survey by Axa Investment Managers.

Asia Pacific excluding Japan was also the third most popular sector as advisers sought alternatives to stocks in the developed world, where fears remain for the economic recovery.

However, bonds as a whole also topped the retail sales charts in September, with inflows of £348m. Corporate bond was also the second most popular sector with £287m in sales, down from first place in August. Strategic bond occupied fourth place.

Overall, net retail sales in September hit £2.4bn, above the monthly average of £2.1bn for the last year.

IMA chief executive Richard Saunders says: “In the last quarter, bond funds have again pro-ved popular, with net sales of £3bn, close to the peaks of the first half of 2009.”

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