UK bond funds suffer first retail outflows in 16 months

Fixed income funds saw their first net outflows since January 2014 last month, according to the Investment Association's (IA) latest figures.

Despite being the best-selling asset class in April, fixed income funds floundered in May with a net outflow of £162m. A sharp reversal in bond yields seen in Europe in particular during April and May appears to have worried investors. The £ Corporate Bond fund sector, for example, saw net outflows of £105m, the highest level since September last year.   M&G Optimal Income hit by £1.5bn outflow amid bond turmoil Conversely, after seeing net outflows in April, equity inflows were at their highest since December with net retail sales of £802m. This was driven largely by...