The Investment Management Association has revealed global bond funds are selling better than ever as it published its fund statistics for September and for the third quarter.
Global bond was the highest-selling sector in September and in the third quarter as a whole, helping drive funds under management to a record £542.6 billion.
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.
Advisers also bought into the property sector, where funds can push up rents to adjust their payouts for inflation.
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 £2.4 billion, above the monthly average of £2.1 billion for the last year.
IMA chief executive Richard Saunders says: “In the last quarter, bond funds have again proved popular, with net sales of £3 billion, close to the peaks of the first half of 2009. In contrast to last year, when the higher income Sterling Corporate Bond sector dominated bond sales, investors are now adopting a diversified approach across actively managed bond sectors.