According to sales figures from Cofunds, the sector held its place as the second-highest selling sector, accounting for almost 16% of net sales last month, compared to an 11% average year-to-date.
The Cautious Managed sector grew even stronger, with nearly 40% of overall sales.
The Newton Real Return Fund – an absolute return fund – continued to be the number one selling fund.
“Cautious managed still has a firm hold on the market but strategic bonds also experienced a high level of advisers’ interest last month,” said Michelle Woodburn, manager of fund group relations at Cofunds.
However, she said early indications pointed to dramatic changes in August.
“In the past two weeks, UK smaller companies, specialist and UK equity income have seen outflows and there have been high inflows into the ISA cash reserve as investors seek to keep their ISA status, but no longer want to be invested in the market,” she said.
“The volatile climate means that investment trends are constantly changing and it will be very interesting to analyse August’s sales trends to find out which sectors advisers choose to favour."
