30th July 2013
Fixed income funds saw record redemptions of £624 million in June the highest since records began in 1992 according to the Investment Management Association.
Equity remained the best-selling asset class with net retail sales of £884m with net retail sales of £1.1bn in June in line with the average for the previous 12 months. The Mixed Investment 20-60% Shares category was the best-selling sector
Jonathan Lipkin, IMA Director of Public Policy, said: “The highest ever net redemptions of fixed income funds by retail investors may have been a response to anxieties about future tapering by the Fed and other central banks. Net flows in June were instead driven by equity funds. In contrast to recent trends, investors showed a preference for UK equity funds in June, which saw the highest net retail sales since October 2006.”
By contrast, UK equity funds were the best-sellers in June 2013 with net retail sales of £479 million – the highest since October 2006. This is the first time since May 2012 that Global equity funds have been beaten as the top-selling equity funds region. In terms of quarterly net retail sales, UK equity funds secured £857 million for Q2 2013 – the highest since Q4 2006.
Global equity funds were the second best-sellers in June 2013 with net retail sales of £262 million. They have previously been the best-selling every month since May 2012. In terms of the quarterly figures, Global equity funds remained the best-selling with net retail sales of £1 billion.
North America was the third best-selling sector both in June 2013 and Q2 2013 with net retail sales of £138 million and £407 million respectively.
In June 2013, Japan saw the highest monthly sales since August 2011 with net retail sales of £62 million.
Europe was the only region to see a net retail outflow in June 2013 at £66 million – the first since August 2012.
|Region||Net retail sales in June 2013||Average net retail for previous 12 months|
|UK||£479 million||-£60 million|
|Global||£262 million||£368 million|
|North America||£138 million||£17 million|
|Japan||£62 million||-£4 million|
|Asia||£9 million||£91 million|
|Europe||-£66 million||£78 million|
In terms of IMA sectors for June 2013 Mixed Investment 20-60% Shares with net retail sales of £271 million, well above its monthly average for the previous 12 months (£185 million). UK Equity Income with net retail sales of £220 million, also well above its monthly average for the previous 12 months (£120 million). Targeted Absolute Return – UK was the third best-selling sector with net retail sales of £216 million. UK All Companies with net retail sales of £203 million, the highest since November 2008. This is the first net inflow of sales since May 2012 and the first time it has been in the top five best-selling sectors since August 2011.
Global Equity Income was the fifth best-selling sector with net retail sales of £177 million.
|IMA Sector||Ranking in June 2013||Net retail sales in June 2013||Ranking in May 2013||Asset Class|
|Mixed Investment 20-60% Shares||1||£271 million||2||Mixed Asset|
|UK Equity Income||2||£220 million||6||Equity|
|Targeted Absolute Return – UK||3||£216 million||1||Other|
|UK All Companies||4||£203 million||35||Equity|
|Global Equity Income||5||£177 million||4||Equity|
The three worst-selling sectors for June 2013 were £ Corporate Bond, Global Bonds and £ Strategic Bond.