Bond funds experienced their largest monthly redemptions on record as investors pulled out £624m in June 2013, reports the Investment Management Association (IMA), the trade body that represents asset managers.
"The highest ever net redemptions of fixed-income funds by retail investors may have been a response to anxieties about future tapering by the [US] Federal Reserve and other central banks," said Jonathan Lipkin, director of public policy at the IMA. "Net flows in June were instead driven by equity funds. In contrast to recent trends, investors showed a preference for UK equity funds, which saw the highest net retail sales since October 2006."
The three worst selling IMA fund sectors for June 2013 were also fixed income: Sterling Corporate Bond, Global Bonds and Sterling Strategic Bond.