Investor demand for equity and bond funds cooled last month, with just one of the 10 most popular IMA sectors seeing a sales rise through Fidelity FundsNetwork in May.
While still the most popular selling sectors on the platform, Specialist and UK Equity Income fund sales each dipped 23% from April.
Europe (ex UK) was the only sector in the top ten sales list to see an increase in May, with a 3% boost.
The Balanced Managed sector saw the largest monthly decrease through FundsNetwork, with sales dropping 27%.
Invesco Perpetual remained the most popular fund house for investors, with four of the 10 highest selling funds.
Neil Woodford’s High Income fund was the most popular – followed by the Jupiter Merlin Income Portfolio, BlackRock UK Absolute Alpha and the Fidelity Cash fund.
Fidelity FundsNetwork head David Dalton-Brown says while the diverse Specialist sector remained most popular, established markets swung back into favour in May.
“Investors continued to show a preference for bonds and cash products in May while the popularity enjoyed by BRICs and commodities funds in the last few months cooled somewhat,” he says.
“While emerging markets – in particular Asia – posted high single digit returns in April, May's top ten performing sectors were dominated by developed markets with a narrower range of returns.
“Despite all the bad news flow coming out of the US, the North American Smaller Companies Sector fared best returning just under 4%.”IFAonline
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