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Tuesday, 30 July 2013 18:20
Fixed Income funds see highest ever redemptions
The Investment Management Association says its monthly authorised investment fund statistics for June show the highest ever level of redemptions of fixed income funds.
The statistics showed that there were £624m of net redemptions of fixed income funds by retail investors, the highest ever, and that equity remained the best-selling asset class with net retail sales of £884m.
Total net fund sales of £1.1bn in June were in line with the 12 month average and Mixed Investment 20-60% shares were 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."
Funds under management were £714 billion at the end of June and Q2 2013 and net retail sales were £5.3 billion for Q2 2013 – the highest since Q2 2011. For the month of June 2013, net retail sales were £1.1 billion. Net sales to institutional investors saw an outflow of £1.7 billion in June 2013.
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In terms of asset classes, in June 2013, fixed income funds experienced their highest net retail outflow (£624 million) since IMA records began in 1992. Equity remained the best-selling asset class in June 2013 with net retail sales of £884 million.
Mixed Asset continued to be the second best-selling with net retail sales of £326 million. Property saw net retail sales of £132 million in June 2013 and £358 million in Q2 – the highest levels since July 2010 and Q2 2010 respectively.
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.
Global equity funds were the second best-sellers in June with net retail sales of £262 million and 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. Net retail sales for Funds of Funds in June 2013 were £333 million, £265 million of which was invested into funds managed by different asset management firms and £68 million was invested into funds run by the same firm.
Tracker funds saw net retail sales of £347 million in June. Net retail sales of ethical funds were £11 million.
The statistics showed that there were £624m of net redemptions of fixed income funds by retail investors, the highest ever, and that equity remained the best-selling asset class with net retail sales of £884m.
Total net fund sales of £1.1bn in June were in line with the 12 month average and Mixed Investment 20-60% shares were 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."
Funds under management were £714 billion at the end of June and Q2 2013 and net retail sales were £5.3 billion for Q2 2013 – the highest since Q2 2011. For the month of June 2013, net retail sales were £1.1 billion. Net sales to institutional investors saw an outflow of £1.7 billion in June 2013.
{desktop}{/desktop}{mobile}{/mobile}
In terms of asset classes, in June 2013, fixed income funds experienced their highest net retail outflow (£624 million) since IMA records began in 1992. Equity remained the best-selling asset class in June 2013 with net retail sales of £884 million.
Mixed Asset continued to be the second best-selling with net retail sales of £326 million. Property saw net retail sales of £132 million in June 2013 and £358 million in Q2 – the highest levels since July 2010 and Q2 2010 respectively.
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.
Global equity funds were the second best-sellers in June with net retail sales of £262 million and 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. Net retail sales for Funds of Funds in June 2013 were £333 million, £265 million of which was invested into funds managed by different asset management firms and £68 million was invested into funds run by the same firm.
Tracker funds saw net retail sales of £347 million in June. Net retail sales of ethical funds were £11 million.
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