Fund sales bounce back in Q2 as investors flock to fixed income

Rotation into fixed income

clock • 2 min read

Sales of open-ended funds to UK retail investors bounced back into positive territory in Q2 seeing £5.5bn of net inflows following two quarters of outflows, according to Investment Association (IA) data.

Following £900m of outflows in Q1, IA chief executive Chris Cummings said 2019 "has been a game of two halves in the fund market". Investors continued to de-risk their portfolios by rotating into bond funds, which accounted for £4.8bn on Q2's flows, despite fears from many commentators that the bond market is in a bubble. For the fourth month in a row, fixed income was the highest-selling asset class in June, reaching net sales of £2.4bn. The IA £ Strategic Bond sector saw its highest monthly total since November 2017, at £1.1bn, with IA £ Corporate Bond gaining £453m and IA Global Bo...

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