Despite bond yields hitting a seven-year high, the UK Corporate Bond sector witnessed net outflows of £134m in May, according to the latest Investment Management Association (IMA) statistics.
This was the largest outflow of any IMA sector, eclipsing the £21m of outflows in North American funds, which was the sector with the second largest redemptions.
At the same time the Specialist sector continued its dominance as the most popular net retail sector, accumulating inflows of £431m. Of this some £378m was invested into property funds.
Unsurprisingly, Isa sales fell considerably in May compared with April, the last month of the Isa season. In May Isa sales totalled £136m, down 84% from the previous month.
However, the funds under management of British-domiciled funds increased 2% from April to May to £470 billion.