UK investors favour fixed income and tracker funds in April

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UK investors favoured fixed income and tracker funds in April, according to the first statistics from the Investment Association since it overhauled its monthly analysis of fund flows.

Fund sales to UK retail investors totalled £1.2bn for the month, the first time this year they have passed £1bn.

From this month, the Investment Association’s monthly fund flow statistics will assess UK investor behaviour rather than fund flows in and out of UK-domiciled funds.

Interim chief executive Guy Sears says this is to “reflect the international offering of the asset management industry”.

Sears says: “Following the slow start in January, the industry has now seen three consecutive months of stronger net retail sales.

“This has mainly been driven by continued investor appetite for fixed income, tracker and absolute return funds.”

Fixed income saw net retail sales of £679m while tracker funds saw sales of £454m.

Absolute returns, the most popular Investment Association sector, saw net inflows of £742m, followed by global at £439m and UK equity income at £342m.

The UK All Companies sector was the worst selling with net retail outflows of £669m.

In equities, global funds saw net retail sales of £548m, followed by North America at £44m.

All other regions had net outflows with European funds experiencing outflows of £507m, followed by Japan at £428m and the UK at £310m.

For the previous 12 months, Asia was the only region to experience net outflows for equity funds, of £96m, while the UK and Europe experienced the highest net inflows at £257m and £230m respectively.