Bonds continue to dominate UK net retail sales although equity funds are starting to gain ground, according to IMA sales figures for July.
F&C has made redundancies across its retail sales division in a restructure of its adviser-facing team.
Net retail sales in UK domiciled funds plunged to a £21m outflow in September, more than £900m down on the inflow recorded the corresponding month last year.
UK domiciled retail fund net sales rebounded to a £90m inflow in August after the previous month's sharp investor exodus, the latest IMA figures show.
Net retail sales suffered a massive £491m outflow in July, compared to inflows of £1bn in July 2007, the IMA says.
Prudential UK recorded an 11% increase in retail sales for the first half of 2008, with a strong second quarter performance driving the jump to £398m.
ISA sales bounced back from a difficult January by recording a £31.7m net inflow last month, the latest IMA statistics show.
F&C Asset Management recorded a 28% increase in UK retail net sales in 2007, despite the industry-wide decline.
Schroders is warning the volatile market conditions will continue until the end of the year as industry-wide retail flows fall sharply.
Isa sales vastly improved in April compared with the previous month to rise by almost a third, but total funds under management are struggling to hold their ground as a result of lower institutional sales.