Net retail sales into funds reached just £23m in August, the lowest level since October 2008 at the height of the credit crisis when there was an outflow of £490m, reports the Investment Management Association (IMA), the trade body representing the UK investment management industry.
The most popular asset class in August continued to be fixed income, making it the best-selling asset class for the 12th month running. The top two selling IMA fund sectors were in the fixed-income area – Sterling Strategic Bond and Sterling Corporate Bond.
"Ironically, given the stellar rally in equities since 1 June, UK All Companies (an equity funds sector) was the worst selling, with a net outflow of £401m," commented Jason Hollands, managing director at investment adviser Bestinvest.
"If the price of a TV falls in the sales we probably feel more tempted to buy it. With equities the opposite happens – after a horrendous May for shares, some investors have rushed for the door into fixed-income funds, which are currently yielding less than equity income. In so doing, they have missed out on a quite remarkable bounce."
