View more on these topics

IMA: Fixed-income funds remain dominant in July

Richard Saunders 480

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 saw £480m of net retail sales last month, which is the 11th month running fixed-income has been the best-selling 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 says: “The latest month shows a similar picture to previous months this year, with net retail sales around the £1bn mark and a continued preference for bond funds and mixed funds.”

In terms of sectors, £ Corporate Bond was the best-selling 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.

Dennehy Weller managing director Brian Dennehy says: “People need to look carefully at the corporate bond funds they are buying.

“Within the £ Corporate Bond sector, there are lots of different funds doing different things and everyone should be looking at their banking exposure.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment