Investors have been buying into equity funds over bond funds for the first time in 12 months, reports the Investment Management Association (IMA), the trade body representing the UK investment management industry.
Equity fund net retail sales reached £541m in September, well above the average over the past 12 months (an outflow of £65m). This is the first time any asset class has beaten fixed income in the past 12 months, since equity was the best seller in August 2011 with net retail sales of £552m. This was despite an equity market rally over the summer this year leading to concerns that investors were missing out (read more on this).
"Net retail sales were again above £1bn in September, reversing the unexpected outflows seen in August," said Jane Lowe, director of markets at the IMA. "Global funds took the lion's share of these net sales, against a notable outflow from UK equity growth funds. However substantial inflows were seen in both UK and Global equity income funds, and a focus on income was apparent in three out of the top five selling sectors."