Monthly inflows higher, but still below average

Net retail fund sales in October were “significantly down” on the monthly average, led by increased outflows from the UK smaller companies sector, according to the IMA.

Net retail sales of £615m for the month were higher than September’s £568m, but still below the monthly average of £2.2 billion.

Richard Saunders, the IMA’s chief executive, says: “October saw a con­tinuation of the more subdued levels of fund sales that have been evident since July.” (article continues below)

Gross sales were down 25%, while repurchases fell 15%.

“Investors favoured bond and balanced funds,” says Saunders. “There was a modest outflow from equity funds for the second month running, with outflows from the developed ­markets – UK, Europe and North America – exceeding inflows into the Global Emerging Markets and Global sectors.”

Bonds continued to be most popular asset class. The £ Strategic Bond sector was the highest seller of the month, with net retail sales of £238m. This was strategic bond funds’ highest sales figure since June, but still fell short of the monthly average of £246m.

Bond sectors have been the highest-selling asset class for two consecutive months.

Equity funds suffered £222m outflows – the largest since October 2008.

UK Smaller Companies was the worst-selling sector in October, falling from 24th position in September.

The sector suffered more than £233m of outflows between September and October.