Record redemptions of £624m from fixed interest funds in June

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.

 

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