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UK bond funds see record £624m outflow in June

UK bond funds see record £624m outflow in June

The IMA fixed income sector witnessed its largest ever monthly redemption in June as investors globally adjusted to a sudden jump in yields, with £624 million being yanked from bond portfolios.

The total outflow echoed figures previously published by the US Investment Company Institute which showed that $28 billion was withdrawn from member-company bond funds last month.

Despite the flood of money out of fixed income funds, net sales remained positive with £1.1 billion in retail sales – primarily into equity, which gained £884 million over the month.

Jonathan Lipkin, IMA director of public policy, said: ‘The highest ever net redemptions of fixed income funds by retail investors may have been a response to anxieties about future tapering by the Fed and other central banks. 

‘Net flows in June were instead driven by equity funds.  In contrast to recent trends, investors showed a preference for UK equity funds in June, which saw the highest net retail sales since October 2006.’

Total assets under management at IMA member-companies stood at £714 billion, with net retail sales of £5.3 billion over the second quarter the highest figure since Q2 2011.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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