UK retail investors pull money out of fixed income funds

flowing water 410Fixed income funds in the UK had the highest monthly outflow of retail money in two decades in June, according to new figures.

Retail investors withdrew a net £624 million (€717 million) from these funds in the month, the highest monthly net outflow since the Investment Management Association (IMA) began its records in 1992.

In contrast, retail investors pumped a net £884 million into equity funds in June, while mixed asset, property and other alternative funds saw inflows.

“The highest ever net redemptions of fixed income funds by retail investors may have been a response to anxieties about future tapering by the Fed and other central banks,” says Jonathan Lipkin, IMA director of public policy.

Although fixed income funds suffered, June was in general a good month for retail flows to UK-domiciled funds, with a net inflow of more than a £1 billion from these investors.

In contrast, there was a net outflow of £1.7 billion of institutional money from UK-domiciled funds, according to the IMA's figures – by far the biggest net monthly outflow in the past year.

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