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Home > Investments > Fixed Income

Bond funds top sales charts despite liquidity fears

Corporate bonds top fund sales once again, as sales increase over first half of 2012.

By Nick Reeve | Published Jul 27, 2012 | comments

Investors continued to pour money into corporate bonds in June in spite of increasing liquidity concerns, the latest IMA statistics show.

The IMA Sterling Corporate Bond sector recorded net retail inflows of £223m for June, with the Sterling Strategic Bond sector bringing in £159m. It means that fixed income sectors have been the top-selling sectors for 10 of the last 12 months.

This is in spite of recent concerns over bond liquidity, which this week prompted M&G to attempt to stem inflows into star manager Richard Woolnough’s Corporate Bond and Strategic Corporate Bond funds.

The Global Equity Income sector recorded inflows of £133m, its highest since the sector was launched in January.

The UK All Companies sector was the worst selling sector for the sixth time in 12 months, seeing £114m of net outflows as investor sentiment towards the UK remained poor.

However, overall sales have fallen significantly when compared with June 2011, when retail inflows into all IMA sectors totalled £2.1bn. June 2012 inflows were £820m.

Retail funds under management have shrunk by 1 per cent over the 12 months to the end of June, to £598bn.

The IMA also published retail sales figures for the first six months of 2012, which showed net retail sales totalled £8.1bn, compared with £4.4bn in the second half of 2011.

IMA sectorJune 2012 net retail inflows

£ Strategic Bond

£159m

Global Equity Income

£133m

Mixed Investment 20-60% Shares

£128m

Global Bonds£72m

visible-status-Standard story-url-IA web 270712 ima sales.xml

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