Fixed income funds lose £891m in Q3

Capital-Stock-Bonds-Shares-Certificate-Portfolio-700x450.jpgFixed income funds saw £891m of outflows in the third quarter, after the highest monthly outflows in net retail sales since June 2013 as £515m left the funds in September, according to the latest data from the Investment Association.

Over the third quarter fixed income funds saw the highest outflows for any asset class, at £891m, compared to £96m of outflows in the second quarter of 2015 and £379m of inflows in Q1.

Equity was the best-selling asset class for the fifth consecutive month in September with net retail sales of £1.1bn, according to the Investment Association.

Asian equity funds were the only equity sector to see an outflow in net retail sales in September at £129m for the fifth consecutive month.

Looking at sectors, UK Equity Income sector remains the top-selling sector with net retail sales of £445m, followed by Targeted Absolute Return with net retail sales of £323m.

Total net retail sales in September were at £1.1bn from £825m one year ago.

Investment Association interim chief executive Guy Sears says:

“Net retail sales went back above the £1bn mark in September with investors directing the majority of their money into equity funds – UK equity in particular.

“Property and Mixed Assets still seems to be favoured if we look at the top five best-selling sectors. However, fixed income continues to suffer the highest withdrawals we have seen for this asset class for some time.”