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Net UK retail fund sales rise to two year high
29 August 2013
July sales of £2.2bn highest since April 2011, says IMA
Investment management Association
Net UK retail fund sales for July hit £2.2bn, the highest level since April 2011, according to figures released by the UK's Investment Management Association (IMA).
Funds under management reached £744bn by the end of the month, up from £616bn at the end of July 2012, with net sales to institutional investors of £851m. Retail sales for June were £1.1bn.
Daniel Godfrey, IMA chief executive, said: “We saw strong net retail sales in July, surpassing £2 billion for the third time this year, with the largest part of this net investment going into equity funds.
“Global equity funds were the best-selling, with equity funds invested in the UK, North America and Europe also doing well.”
Equity funds continued to experience strong demand, with retail sales of £1.4bn - the highest since level of sales since December 2010 – with mixed asset fund sales a distant second at £397m.
On a regional basis, global equity funds were the most popular, with saw net sales of £515m, while UK equity funds had net retail sales of £392 million and North American equity funds had net sales of £247 million.
European equity funds had sales of 181m, while Japan and Asian funds had lower levels, with sales of £67m and £16m, respectively.
The IMA said property fund sales were £140m during the month – another highest level since July 2010 – and saw the asset class break into the top 5 sectors.
Corporate bond fund sales fell dramatically, seeing outflows of £131m. It had been the best-selling sector 12 months previously.
Fund of funds continued to attract strong inflows. July saw £383m of sales, of which £243m was invested into funds managed by different asset management firms, with the remaining £140m invested into funds run by the same firm. Funds under management for funds of funds stood at a record £81.8bn at the end of July 2013, or 11% of all industry funds under management.
Passive tracker funds saw sales of £352m, with total fund under management reaching £71.7bn at the end of July, or 9.6% of all funds under management, compared to 7.8% at the end of July 2012.