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Retail and corporate bond sales plummet, says IMA

Corporate bond and absolute return funds suffered outflows of £390m and £43m respectively in January, more than halving January’s net retail sales year-on-year, accoeding to the IMA.

Overall net retail sales plunged to £891.5m in January, less than half the monthly average for the past 12 months. December net retail sales were £2.5 billion. Since January last year, when net sales were £1.9 billion, they have averaged £2 billion.

Other big losers were funds in the Europe excluding UK sector, which lost £81.3m, as well as funds in the Asia Pacific excluding Japan sector, which lost £40m, and those within the China/Greater China sector, which lost £23m.

Global, £ strategic bond and global bond funds topped January’s net retail sales with £166.3m, £161.7m and £142m respectively.

Bonds dominated the IMA retail sales statistics for much of last year and all of the previous year. However, net retail sales of bonds fell to their lowest level since October 2008, totalling £37m. The sales figures were also well below the average of £584m for the past 12 months.

The leading asset class in January was equities, with net retail sales of £534m in January, slightly below the monthly average of £624m for the past 12 months.

Gross sales of equity funds in January accounted for 56 per cent of

total gross sales, compared with an average of 53 per cent for the past 12 months.

Balanced was the second highest selling asset class in January at £231m, below the monthly average of £299m.

Assets under management rose to £569 billion, up from £469 billion in January 2010.

Overseas domiciled funds saw net retail sales of overseas funds totalled £292.3m, over three times the monthly average for the past 12 months of £84.7m and the highest level since July 2010. 

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