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IMA: Bonds dominate as retail sales hit £8.1bn in first half of 2012

RichardSaundersIMA

Net retail sales have jumped to £8.1bn in the first half of 2012 with fixed income continuing to dominate, according to figures from the Investment Management Association.

The figures is almost double the £4.4bn of net retail sales seen in the second half of 2011.

Fixed income remained the biggest selling asset class for the tenth consecutive month, with net retail sales of £417m for June 2012. This figure is down on the average monthly intake of £527m over the past 12 months.

The Corporate Bond sector retained its position as the best selling retail sector in June 2012, with net retail sales of £223m, above the monthly average for the past 12 months of £212m but down on the £481 of net retail sales seen in May 2012. This now means a fixed income sector has been the bestselling sector for 10 of the last 12 months.

Strategic bonds was the second best selling retail sector in June 2012 with sales of £159m, while global equity income was third with sales of £133m. The Mixed Investments 20-60% Shares and Global Bonds sectors were fourth and fifth with sales of £128m and £72m respectively.

The UK All Companies sector was the worst selling sector with a net outflow of £114m in June 2012. The sector was the worst-selling in six out of the last 12 months.

The mixed asset sector was the second best selling asset class, after fixed income, with £170m of net retail sales in June 2012, while equities recorded net retail sales of £120m, well above the average of £28m in the past 12 months.

There were £820m of net retail sales in June 2012, down on the £1.2bn recorded in May 2012 and the £2.1bn of sales in June 2011. Funds under management now stand at £598bn compared to £604bn in June 2011.

IMA chief executive Richard Saunders says: “In the first six months of 2012, net retail sales have steadied at about a billion a month, following the very strong performance from 2009 to the first half of 2011.

“In June, the fixed income sectors again saw the strongest inflows, with £ Corporate Bond and £ Strategic Bond continuing to secure the top two spots. These two sectors were also the best-sellers for Isa net retail sales.”

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