Net retail sales were £840m (€940m, $1.1bn) for the month with total assets under management stable at £1.2trn, according to the Investment Association (IA). In June 2017, net retail sales were £3.2bn.
IA fund market specialist Alastair Wainwright attributed the poor sales figures to a continued uncertain political landscape and the possibility of a trade war. They were the worst figures in 18 months.
Strategic Bond outflows
Fixed income was the hardest hit asset class, facing £327m outflows, while Sterling Strategic Bond was the worst selling sector with £413m redemptions.
The June figures reverse the trend seen in 2017 when investors piled into fixed income, particularly the Sterling Strategic Bond sector, which is touted as a way to outsource difficult bond allocation decisions in the face of rising interest rates.
UK remains unloved
When it comes to equities, investors are still shunning the UK, pulling £280m from the region over the month.
AJ Bell personal finance analyst Laura Suter said investors are instead pegging their fortunes on higher growth nations.
“America has been the biggest beneficiary, with the tax cuts and strong economy drawing investors in, who allocated almost £250m to the US in June,” Suter says.
The Global equity sector, which has a high proportion of US exposure, was the best-selling sector (£291m) and North America (£243m) third best-selling sector. The Mixed Investment 40-85% Shares sector was second best-selling at £272m.
Best-selling Investment Association sectors
| Investment Association Sector | Ranking in June 2018 | Net retail sales in June 2018 | Ranking in May 2018 | Net retail sales in May 2018 | Asset Class |
| Global | 1 | £291 million | 2 | £347 million | Equity |
| Mixed Investment 40-85% Shares | 2 | £272 million | 3 | £191 million | Mixed Asset |
| North America | 3 | £243 million | 4 | £172 million | Equity |
| Volatility Managed | 4 | £149 million | 7 | £138 million | Other |
| Targeted Absolute Return | 5 | £143 million | 1 | £516 million | Other |
