With net retail sales of £445m, up from £317m in May, the targeted return sector, just beat equity income to first place.
Overall net retail sales came in at £1.5bn, the association said, holding up well despite the uncertainty seen in Greece and China during the period. This was in stark contrast to the institutional market which recorded net sales of -£508m.
The most noticeable change over the month, the IA said was the improvement in sales seen in the mixed asset sector, which had its best month since last summer.
Funds in the Mixed Investment 40 – 85% shares sector saw the most flows, rising from £120m in May to 259m in June, placing them third in the overall rankings for the month. The 20 -60% shares sector saw £79m in inflows while the 0 – 35% shares and UK Equity and Bond Income sectors both brought in £5m. The Flexible Investment sector saw sales of £55m.
This increase in mixed asset and targeted return sectors reflected a decision by many retail investors to leave asset allocation up to fund managers in light of the uncertain environment, said Daniel Godfrey, IA CEO.
Similarly, there was a distinct home bias in evidence as UK equity funds were the best-selling for the first time this year with net retail sales of £491 million. According to the IA, the last time net retail sales were as high for UK equity funds was in October last year.
On the other side of the coin, the worst-selling sector in June was Asia Pacific Excluding Japan with net retail outflows of £226m.
Also reporting net outflows was the fixed income sector as a whole. While UK gilts and UK index linked gilts, saw £51m and £93m in inflows during the month, these were overwhelmed by outflows from sterling corporate, high yield and strategic bonds of £21m, £51m and £104m respectively.
The global bonds and Global Emerging Markets Bond sectors recorded outflows of £101m and £64m.
