Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a694842

UK bond funds see record £624m outflow in June

by David Campbell on Jul 30, 2013 at 12:59

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outflow echoed figures previously published by the US Investment Company Institute which showed that $28 billion was withdrawn from member-company bond funds last month.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

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Sponsored Video: Barings on investing in Frontier Markets


From Nigeria to Pakistan and from Kenya to Kuwait, frontier markets are catching investors' attention as never before.

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet