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Net retail sales hit slump in August as investors pull out of equities

Richard Saunders 450 whitebg

The Investment Management Association (IMA) has revealed that net retail sales hit the lowest level since October 2008, after reporting inflows of just £23.2m during August.

Inflows were far lower than the previous year’s £1.2bn in net retail sales, reported during August 2011, as investors pulled money out of equity funds.

Net outflows of £604m from equity funds were reported during August, the biggest outflow since November 2011.

Fixed income remained the best-selling asset class, dominating other sectors for the ninth consecutive month, generating net retail sales of £518m.

The asset manager trade body also reported outflows from individual savings accounts (ISAs) of £105.7m.

IMA chief executive Richard Saunders (pictured) says: “Retail sales in August were the lowest since October 2008 but it’s only one month.

“Taking the first eight months of the year, net retail sales of £9.1 billion are down on last year but still healthy.”

The IMA £ Strategic Bond sector was the best-selling sector in August, generating net retail sales of £187m, it was the third most popular sector in July.

The IMA £ Corporate Bond sector, the most popular sector in July, was second-ranked generating sales of £184m. The IMA Global Equity Income sector was thethird most popular with sales of £104m.

The IMA UK All Companies was the worst-selling sector with net outflows of £401m during August, the highest level of outflows since January 2008.

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