Investors opt for Cautious Managed, says IMA

Absolute Return funds have slipped from being the top selling sector in net retail terms in May to ninth in June, according to the latest Investment Management Association (IMA) statistics.

In June the Absolute Return sector saw net retail inflows of £125.6m, down from £181m in May. Instead investors turned to Cautious Managed funds in June, with the sector taking in £217.9m of net retail flows, making it the most popular peer group, up from the third most popular sector last month.

The least popular sector in June was Japanese Smaller Companies, which saw net outflows totalling £114.3m. Of the top five selling retail sectors, none were equity peer groups, with £ Strategic Bond coming second, Property third, Unclassified fourth and Global Bonds fifth. (article continues below)

In total June saw net retail sales of £2.1 billion, while for the first six months of the year net retail sales totalled £10.8 billion, which the IMA says is the second best half-yearly figure on record.

In terms of asset classes bonds, with net retail sales of £579m, beat equities, which attracted £525m of inflows.