Sales of retail mutual funds soared to £20.4bn in 2013 and the highest since 2000

29th January 2014

Sales of retail mutual sales soared to £20.4 billion in 2014, up from £14.3 billion in 2012. Equity funds saw highest net retail sales since 2000 at £11.4 billion with the fund category Mixed Investment 20-60% Shares the best-selling sector.

Daniel Godfrey, IMA Chief Executive, said: “Retail investors were highly active in 2013, committing an average of over £1.6 billion of new money to funds every month. Equity funds took by far the largest share of the net inflows from investors.  After a number of years with the strongest net sales, fixed income took no new money in 2013. Both mixed asset and property funds saw stronger inflows than in 2012.”
FUNDS UNDER MANAGEMENT AND NET SALES

Funds Under Management Retail Sales Institutional Sales
2013 £770 billion £20.4 billion £1.7 billion
2012 £662 billion £14.3 billion £8.4 billion

ASSET CLASSES – Net retail sales

Equity was by far the best-selling asset class in 2013 with net retail sales of £11.4 billion – the highest since 2000 (£14.7 billion). This asset class has been the best-selling every month since September 2012 save one month – March 2013.

In 2013, Fixed Income funds – which were the best-selling in 2012 – saw their first ever net retail outflow of £17 million. However this is 0.01% of the funds under management (£126 billion).

2013 Ranking Asset Class 2013 Net retail sales 2012 Ranking 2012 Net retail sales
1 Equity £11.4 billion 2 £3.7 billion
2 Mixed Asset £4.6 billion 3 £2.8 billion
3 Other* £3.0 billion 4 £1.8 billion
4 Property £1.5 billion 5 £423 million
5 Fixed Income -£17 million 1 £5.6 billion
6 Money Market -£103 million 6 -£52 million

Among equity funds global equity funds remained the best-selling in 2013 for the sixth consecutive year with net retail sales of £4.0 billion.

The UK region, which was the worst-selling for equity funds in 2012 with an outflow of £944 million, was the second best-selling in 2013 with net retail sales of £2.9 billion – the highest since 2001. Just over £2.5 billion was during the second half of the year.

European equity funds were the third best-selling in 2013 with net retail sales of £2.0 billion – the highest since 2000. These funds were the second worst-selling in 2012 when they saw an outflow of £478 million.

North American equity funds were the fourth best-selling in 2013 with net retail sales of £1.1 billion – the highest since 2001.

Region Net retail sales
in 2013
Net retail sales
in 2012
FUM in
Dec 2013
Global £4.0 billion £4.1 billion £128 billion
UK £2.9 billion -£944 million £222 billion
Europe £2.0 billion -£478 million £45.8 billion
North America £1.1 billion £313 million £32.6 billion
Asia £745 million £699 million £30.0 billion
Japan £663 million -£32 million £10.5 billion

IMA sector rankings

Mixed Investment 20-60% Shares was the best-selling IMA sector for 2013 with net retail sales of £3.1 billion, the highest since 2010. This is the sixth time in ten years that this sector has been the best-seller.

2013
Ranking
IMA Sector 2013 Net
retail sales
2012
Ranking
2012 Net
retail sales
Asset Class
1 Mixed Investment 20-60% Shares £3.1 billion 3 £1.9 billion Mixed Asset
2 Targeted Absolute Return £2.2 billion 9 £860 million Other
3 UK Equity Income £1.8 billion 6 £989 million Equity
4 Global Equity Income £1.8 billion 5 £1.3 billion Equity
5 Property £1.5 billion 14 £423 million Property

The worst-selling IMA sector in 2013 was £ Corporate Bond with an outflow of £1.7 billion – the lowest net retail sales ever recorded for the sector since it launched in 2008. This sector was worst-selling for seven months during 2013.

The best-selling IMA sectors for ISAs in 2013 were:

1.    Mixed Investment 20-60% Shares (£431 million net)
2.    UK Equity Income (£374 million net)
3.    Global Equity Income (£264 million net)

The worst-selling sector for ISAs in 2013 was UK All Companies for the fourth consecutive year.

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