Net sales reach highest point in three years, says Lipper

UK net fund flows have reached their highest quarterly level for three years, according to Lipper's quarterly fund sales report.

The previous high was in the first quarter of 2006, says Lipper, when the last bull market was in full swing. The data provider says this more positive picture is mainly due to a significant reduction in redemptions by both retail and institutional investors. The report also states a large proportion of this increase is due to sales of bond funds which have enjoyed particularly strong inflows since the UK interest rate was effectively cut to zero. As a consequence of this, the Lipper report reveals those groups with strong fixed income teams have benefited substantially, with top s...