Bond funds continue to dominate UK retail sales, with more than half of inflows heading into fixed-income portfolios during July.
The latest figures from the Investment Management Association show fixed-income funds witnessed £480m of net retail sales last month, which is the 11th month running fixed-income has been the bestselling asset class.
During July, IMA funds benefited from £903m of net retail sales. Multi-asset was the second highest selling asset class with inflows of £211m, followed by equity funds with net sales of £152m.
IMA chief executive Richard Saunders (pictured) says: “The latest month shows a similar picture to previous months this year, with net retail sales around the £1 billion mark and a continued preference for bond funds and mixed funds.”
In terms of sectors, £ Corporate Bond was the bestselling for an eighth consecutive month with net retail sales of £218m. It was followed by Mixed Investment 20-60% Shares, £ Strategic Bond, Global Bonds and Global Equity Income.
Europe excluding UK was the worst-selling sector during July, being hit with a £175m outflow. This is the 15th successive net outflow for the sector.
Funds under management totalled £612bn in July 2012, up from £600bn one year earlier.