Record sales for UK equity income funds in June

Equity is best-selling asset class by far, says IMA

Record sales for UK equity income funds in June

Equity has been recorded as the best-selling asset class for the fifteenth consecutive month, with net retail sales of £1.2 billion, according to the Investment Management Association (IMA).

Property was the second best-selling asset class with net retail sales of £316 million, and Mixed Asset was third, with net retail sales of £307 million, as illustrated in the following table:

IMA sector Ranking in June 2014 Net retail sales in June 2014 Ranking in May 2014 Asset Class
UK Equity Income 1 £1.4 billion 2 Equity
Property 2 £316 million 1 Property
Mixed Investment 20-60% 3 £222 million 5 Mixed Asset
£ Strategic Bond 4 £171 million 4 Fixed Income
Mixed Investment 40-85% Shares 5 £154 million 6 Mixed Asset

In its monthly statistics report for authorised investment funds for June 2014, the IMA found fund net retail sales were £2.1 billion and funds under management were £798 billion

“June was another strong month for retail fund sales with equity funds again doing well,” said Daniel Godfrey, IMA Chief Executive.

“Inflows to the UK Equity Income sector were dominant with £1.4 billion of the £2.1 billion total net retail sales in June. Property funds also continued to be popular, with property the second best-selling asset class in June. Mixed asset funds were not far behind.”

The worst-selling IMA sector for June 2014 was UK All Companies with a net retail outflow of £421 million. The last time this sector was the worst-selling was in May 2013.

Other highlights:

  • UK was by far the best selling region for equity funds, with net retail sales of £870 million – the highest since March 1998
  • UK fund platforms continues to see the highest gross retail sales at £7.1 billion, representing a 57% market share (up from 49% in June 2013)
  • In June 2014 there was an outflow of £74 million in net retail sales of ISAs through fund companies and the five fund platforms that provide data to the IMA (Cofunds, Fidelity, Hargreaves Lansdown, Skandia and Transact)

 

 

 

Categories: Funds, News

About Author

Shelly Ford

Shelly Ford, assistant editor at Every Investor, has worked as a writer within the banking and insurance sectors for ten years. She has a particular interest in personal finance and retail banking.