Investors pile back into fixed income as global bond sales soar

Global bond sales have hit their highest ever level rocketing to £361 million in July.

Figures from the Investment Management Association (IMA) revealed the three best selling sectors during the month all fell within the bonds category.

The Global bond, sterling corporate bond and sterling strategic bond sectors occupied three out of five of the IMA's best selling league table slots.

‘Investor appetite for bonds was buoyant in July, with global bond sales the highest on record,’ Jane Lowe, markets director at the IMA, said.

The bonds sector enjoyed an initial wave of investment last year, however this was restricted mainly to the UK segment.

‘We are now seeing a second wave of investment that is well diversified across UK and global fixed income,’ Lowe (pictured) added.

Elsewhere, the IMA reported net retail sales across the entire funds market had risen by £0.1 billion on June’s figure, lifting to £2.2 billion during July.

Net retail sales have remained steady over the past 12 months according to IMA figures, aside from May’s dip to £962 million.

The hike in July means the net retail sales figure has sat above the £2 billion mark for 13 out of the last 16 months.

Funds under management also grew during the period, rising 4% from June to £509.2 billion.  This marks an upward shift nearer to the figure recorded in April, before markets fell in May and June over pre-election and budget jitters.