Investors continue to favour equities over bonds
The Investment Association today publishes its monthly statistics for authorised investment funds forAugust 2015 which show:
- Equity continues to be the best-selling asset class with net retail sales of £503 million
- UK Equity Income sector remains the top-selling sector with net retail sales £520 million
- Fixed income funds see highest outflow in net retail sales since June 2013 at £333 million
- Total net retail sales of £690 million, the lowest since January 2015
Daniel Godfrey, The Investment Association Chief Executive, said:
"Sales dropped in August to £690 million, the lowest since January 2015, after an exceptionally strong July when we saw net retail sales of £3 billion. Market volatility may have made investors more cautious in August, reinforcing a tendency for sales to dip over the summer period.
"In terms of asset allocation, investors appear to be sticking with equities - particularly equity income funds - whilst withdrawing money from bonds, perhaps in expectation of an interest rate rise.
"Fixed income funds and Asian equity funds suffered with record retail outflows in August."