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.