Fixed income posts highest inflows since 2010

Fixed-income funds started the year with the highest level of retail sales since October 2010, reports the IMA.

The best-selling sector for January was IMA £ Corporate Bond which, with £303m in net retail sales, reported its strongest month since August 2010. Overall retail sales were equally strong.

The £998m recorded for January represents the highest figure since August 2011.

However, this is still below the monthly average of £1.6 billion for the previous 12 months.

Richard Saunders, the chief executive of the IMA, says: “January saw an uptick in fund sales, with investors adding almost £1 billion to their portfolios.

“Fixed-income funds saw their highest sales since October 2010, with strategic and corporate bond funds particularly popular.”

Saunders says equity funds reversed four consecutive months of outflows to report £63m in positive sales in January.

The worst-selling sector, in net retail terms, was UK All Companies. While the sector was the best seller in gross sales with £825m, some £961m of total outflows in January resulted in negative net retail sales of £136m.

Investors were particularly bullish on Asia Pacific excluding Japan, making it the fifth highest selling sector. This is the first time the sector has been a top five seller in two years and it moves up from 29th place last month.