Fund sales remained subdued in October, says IMA

Retail fund sales in October were “significantly down” on the monthly average, led by increased outflows from the UK smaller companies sector, reports the Investment Management Assocation (IMA).

Richard Saunders
Richard Saunders

Net retail sales for October amounted to £615m, representing increased activity on September when the figure was £568m, but still well below the monthly average of £2.2 billion.

Richard Saunders, chief executive at the IMA, says: “October saw a continuation of the more subdued levels of fund sales that have been evident since July.”

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

“Investors favoured bond and balanced funds. 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,” adds Saunders.

Bonds continued to be most popular with retail investors with the Sterling Strategic Bond sector emerging as the highest selling sector of the month, with net retail sales of £238m.

Although strategic bond fund sales reached their highest level of sales since June 2011, it is still below the monthly average of £246m.

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

Equity funds were subject to £222m in outflows – the largest outflow since October 2008.

UK Smaller Companies was the worst selling sector in October, falling from 24th position in September. The sector was subject to outflows amounting to more than £233m between September and October.

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