Fixed income and global funds secure combined inflows of £1.5bn

Fixed income and global funds saw combined net retail sales of £1.5bn in March, bucking the trend of mounting outflows sparked by Brexit uncertainty.

Global funds secured net retail sales of £691m in March, making it the largest month of inflows into the sector on record, according to analysis by the Investment Association.

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Meanwhile, fixed income saw sales of £810m last month, which is the highest figure since January last year.

Funds under management remained flat at £1.2trillion despite UK-based funds seeing outflows of £205m in March, making it the sixth consecutive month of net retail outflows due to ongoing Brexit and economic uncertainty.

Investment Association chief executive Chris Cummings said: “Despite a bumpy start to the year, which saw £2.4bn outflows in the first quarter, funds under management increased to £1.2 trillion.

“Ongoing economic and Brexit uncertainty continued to impact Europe and UK equity finds, with savers pulling out £1.4bn and £816m, respectively, since the start of the year.

Read more: European funds hit 11th month of outflows

“Savers have turned towards global equity funds and mixed asset funds in the first quarter, whilst fixed income fund have seen a return to inflows.”

The worst-selling sector was Europe excluding the UK, which recorded outflows of £412m during the month.