Corporate bonds still top seller, says IMA

Bond funds had net retail inflows of £1.4 billion in January as investors piled into the asset class, according
to the Investment Management Association (IMA).

The IMA’s £ Corporate Bond sector accounted for 23% of gross retail sales in Britain, while £191m was pulled from equity funds. The £ Corporate Bond sector has been the most popular among retail investors for the past three months. The sector received net retail inflows of £1 billion, accounting for 71% of net sales and making it by far the most popular sector over the month. The biggest net outflows, of £212m, were from Europe excluding UK.

Overall, funds under management in British domiciled funds finished the month at £354.2 billion, a 2% decline from December and an 18% fall from January 2008. Isa sales fell sharply over the month from £52.3m last month to £1.4m, but this was still an improvement on the £335.3m of net outflows in January 2008.