Fixed income appeared to return to favour in October, with funds focusing on the asset class enjoying their first net retail inflows for six months.
Investment Association (IA) statistics showed fixed income funds had net retail sales of £109m - the first positive figure for the asset class since April.
Meanwhile investors continued to favour equity funds, which attracted net inflows of £710m, marking equity’s sixth consecutive month as the best-selling asset class, while Targeted Absolute Return had the best month among IA sectors with net retail sales of £424m.
Total net retail sales were up slightly, from £1.1bn in September to £1.2bn.
Guy Sears, interm chief executive at the IA, said: “Net retail fund sales stood at £1.2bn in October, mainly driven by continued investor appetite for equity funds, but we also saw fixed income products recover and hit a six-month high.
“Targeted Absolute Return was the best-selling sector for the third time this year and mixed asset funds were the second best-selling asset class, suggesting many investors looked to fund manager wisdom for asset allocation.”
