Net retail sales of investment funds totalled 230m in May, nearly 96% of which was invested in bonds, according to the Investment Management Association.Bonds accounted for 220m of net retail sales over the course of the month, while equities recorded a net retail outflow of 83.4m over the same period. Total net sales were also heavily in favour of fixed income, with bonds accounting for 622m of sales and equities posting outflows of 357m. While May’s net retail sales figure was higher than the May 2004 net retail sales total of 116.2m, it was significantly down on last month’s figure of 657.6m. Net Isa sales of 115m in May were also 32% lower than net Isa sales in May of last year, which totalled 167.6m. The UK Corporate Bond sector was the best-selling sector in terms of net retail sales in May with sales of 127m, overtaking the UK Equity Income sector, which had been the best-selling sector for the past 11 months. The UK Equity Income sector was ranked fourth in terms of net retail sales in May, behind the Cautious Managed and UK Other Bond sectors. The UK Smaller Companies sector was the worst-selling sector in May, with outflows of 69m. Total funds under management were also up slightly in May to 289.4bn, 4% higher than April’s total and 16% higher than the same period last year. Intermediaries remained the most popular distribution channel, accounting for 75% of gross retail sales. Trends, page 14.