The Corporate Bond sector remains at the top of the IMA leader board for the fourth consecutive month, with gross retail sales comprising 26% of UK fund sales in February.
Investors have continued to pour money into the sector since October, with net retail sales of £854.8m last month.
In total, UK net retail sales shot up to £1.2bn in February, from £271.2m during the same month in 2008, with inflows into the bond sector as a whole accounting for £1.1bn.
This was to the detriment of equity funds which suffered outflows of £66m. Japan was hit the hardest, with the sector seeing net outflows of £172.9m.
Overall, UK funds had AUM of £339.2bn in February, having fallen 5% from January and dropped 23% lower than February 2008.
"For the fourth consecutive month investors have been adding significantly to their investment holdings, with bond funds continuing to be the asset class of choice," says IMA chief executive Richard Saunders.
He adds: "Investors appear however not to be ready to put new money into equity funds yet."
Isa funds saw net outflows of £112.5m last month, although this was an improvement on the £179.1m net outflows recorded in February 2008.
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till