June saw a net outflow of £986m for retail funds, according to latest figures from the Investment Association.

Gross retail sales through financial advisers were £10.8bn, representing a market share of 35.6%.

This is an increase of over £2bn from May when gross retail sales through Financial Planners and IFAs were £8.4bn, representing a market share of 31.4%.

June saw the first monthly outflow for retail funds this year.

The only retail funds equity region which saw inflows in June was Japan, with £227m of net inflows for the month.

North American equity funds saw a £657m outflow, despite improved performance in the US market. This impacted on sales of tracker funds which dipped to £272m in inflows.

UK retail investors put £356m into funds in May. 

The best-selling Investment Association sectors for June were:

• UK Gilts with net retail sales of £504m
• Volatility Managed with net retail sales of £316m
• Specialist Bond followed with net retail sales of £238m
• Japan with net retail sales of £215m
• Government Bond was fifth with net retail sales of £173m

Mixed asset funds saw inflows of £523m, the highest performing asset class for the month.

Chris Cummings, chief executive of the Investment Association, said:  “We have seen a positive first half of the year, with retail investors putting just over £6 billion into funds, with the majority of this flowing into fixed income funds. 

“June, however, has proved to be both a politically and economically challenging month. With the resignation of three Conservative MPs triggering by-elections and stickier than expected inflation in the UK, it can be of little surprise that investors have remained cautious.

"Combined with the pressure on the cost of living and acceleration of monetary policy tightening, investors withdrew just under £1 billion from funds in June. On the positive side, there were record inflows into UK Gilts and modest inflows to Government Bonds, following the Bank of England's rate rises."