GEM fund sales hit record as investors flee UK vehicles

The IMA Global Emerging Markets sector recorded its largest monthly net retail inflow on record in October, as investors redeemed a significant amount from UK All Companies funds.

Global Emerging Markets funds saw a net retail inflow of £336m, an all-time monthly high, as investors increasingly look to up allocation the rapidly growing developing world.

At the same time, the UK All Companies sector suffered another sharp month of redemptions, with retail investors pulling out a net £239m. It followed a net retail outflow of £74m in September.

Absolute Return was the second most popular IMA sector in October, with £285m in net retail sales, followed by Global Bonds at £262m.

Overall, October saw £2bn of net retail sales, the ninth month of inflows more than £2bn barrier over the past year.

"Despite a slowdown month on month, year to date ISA sales are still showing a strong recovery. Investors continue to take advantage of the tax benefits of ISA investing," IMA chief executive Dick Saunders says.

"Appetite for global investing continues, with the Global Emerging Markets sector reporting its highest sales on record in October. Global Bonds remains a popular choice for investors, ranked as third highest selling sector."