The fixed interest sector recovered from its low point earlier this year to overtake the multi-asset sector in May, according to the latest sales data on the Skandia Investment Solutions platform.

Skandia said the fixed interest sector now accounts for nearly a quarter of all net sales on the platform, closely followed by the multi-asset sector, which has slipped to second place with 23 per cent of net sales.

Global specialist and UK equity sectors have remained fairly constant and continue to be key investment sectors, the firm said.

The firm pointed out that the rise in the fixed interest sector has been driven by particularly strong sales of the Fidelity Strategic Bond and Old Mutual Monthly Income fund, with the latter being the top-selling fund in May.

Skandia said the HSBC American Index, the third bestselling fund, was notable given the recent performance of US equities. However, it said it is unusual for a passive fund to feature in the top-selling list.

“In the current low bond yield environment it is becoming increasingly more complex allocating to fixed income. Strategic bond funds have benefited from this, with investors preferring to use skilled managers who have the flexibility to allocate across the fixed income universe. The emergence of property amongst the top-selling funds alongside many other income oriented funds also reflects the continued search for sources of income and diversification away from traditional fixed income strategies," said James Millard, director of investments at Skandia.