Fixed income funds see highest redemptions on record

• £624m net redemptions of fixed income funds by retail investors – the highest ever
• Equity remains the best-selling asset class with net retail sales of £884m
• Net retail sales of £1.1bn in June in line with the 12 month average
• Mixed Investment 20-60% Shares the best-selling sector

Jonathan Lipkin, IMA Director of Public Policy, said:

“The highest ever net redemptions of fixed income funds by retail investors may have been a response to anxieties about future tapering by the Fed and other central banks. Net flows in June were instead driven by equity funds. In contrast to recent trends, investors showed a preference for UK equity funds in June, which saw the highest net retail sales since October 2006.”

“Overall June net retail sales were in line with recent averages, and net retail sales during the first half of 2013 were comparable to the same period in 2012.”