31st March 2014
The love affair with equities continued apace in February as investors squirrelled away millions into funds that invest in UK shares over the month writes Philip Scott.
According to the latest sales figures from fund trade body, the Investment Management Association (IMA), UK equity portfolios for the fourth consecutive month were by far the best-selling region during February, with net retail sales of £555m.
The UK All Companies funds after notching up sales of £371m, well above their monthly average over the previous 12 months of £60m, were the most popular fund type.
Their continuing popularity should come with little surprise given that over the past 12 months, the average UK All Companies fund has returned 13% to investors, growth far and above anything they would have achieved by having their cash on deposit.
Global equity funds were the second best-selling region with net retail sales of £296m while European equity funds took bronze with an intake of £285m.
In contrast both Asian and North American equity funds saw the highest net retail outflows on record at £260m and £290m respectively.
Commenting on the figures, IMA chief executive, Daniel Godfrey, says: “Strong fund sales continued in the second month of 2014 with investors continuing to favour equity funds. UK equity funds in particular are seeing the best net retail sales for some time. “However, looking at the top five best-selling IMA sectors, investors also invested significantly into property, fixed income and targeted absolute return funds.”