Bond funds dominate net sales in July despite FSA probe

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Fixed income continues to be the asset class of choice for UK retail investors, accounting for more than half of July's net retail sales, the latest figures from the Investment Management Association (IMA) show.

Bond funds took £480m of the £903m invested into funds last month by retail investors, the IMA data reveals. The Corporate Bond fund sector was the best-selling sector, taking £218m, while ensuring bond funds topped the best-seller list for the eighth consecutive month. Inflows come despite the news that the FSA sent letters to fund houses last month requesting reports on whether their corporate bond funds could meet redemption demands, amid liquidity concerns in the fixed income market. Bond fund liquidity is currently a key focus for investors, with M&G recently moving to stem in...

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