That wasn’t the only positive news to be found in the IMA’s latest sales statistic report. According to the trade body while net retail fund sales overall dipped in May, they remained well ahead of this point last year, with £1.1bn in inflows.
May also highlighted the growing dominance of bond fund sales, with the asset class taking over from equities for the first time in six months. The IMA reports £497m went into bonds while net retail sales of equities accounted for just £64m. Balanced funds totaled £180m in May.
For the fifth straight month, the Sterling Strategic Bond sector drew the most interest, accounting for 35% of gross retail sales. Net retail sales of £341m, pushed the Strategic Bond sector well above its monthly average of £220m over the previous 12 months, the IMA reports. Global funds also fared reasonably well, ranking second among the best sellers and marking the third month in a row in which it has been among the top five. North America was the worst selling retail sector in May.
In terms of distribution trends, May saw little change from previous months, with intermediaries dominating market share. Fund platforms took in £0.9bn, which is broadly in line with their monthly average over the past year. Market share of total gross retail sales by the platforms hit 41% in May, while funds under management reached £113bn, the highest on record.
