Equity Income suffers

If you managed to look beyond the obvious headline of corporate bonds continuing to dominate in terms of net retail sales (10 months in a row now!) you will have seen that UK Equity Income funds—the darling sector of the industry—was the least popular peer group of funds in August, according to the IMA. Compared with £81m of sales in July, £295m in June and £280m in May, the sector witnessed a net outflow of £25.8m in August.

This ranks the sector behind, among others, Money Market, UK Index Linked Gilts, Japanese Smaller Companies and Technology and Telecommunications in terms of popularity.

The IMA confirmed the statistics are correct and suggested the poor showing of UK Equity Income funds may just be a one off. In any case, it certainly is a more interesting story than the continuing dominance of corporate bonds.