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Great rotation at last? Equity funds top bestseller list in April

Ruth Gillbe
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Ruth Gillbe

Equity funds regained their position as best-sellers in the UK market in April, according to the latest figures from the Investment Management Association (IMA).

The long-awaited shift from bonds to shares is starting to be reflected in the trade body’s sales figures, with equity the best-selling asset class for the month, posting net retail sales of £799m.

Mixed asset funds were the second best-selling asset class, notching up net retail sales of £610m, the highest since April 2011.

Fixed income funds had net retail sales of £335m, making them the third best-selling funds in terms of asset class, while property fund posted net retail sales of £98m – the highest level since June 2011.

Total net retail sales came to £2.1bn, a slight fall from the £2.2bn recorded in April 2012. Funds under management totalled £726bn, from £610bn the previous year.

The UK Equity Income sector overtook Absolute Return as the best-selling sector in April, recording net retail sales of £358m, the highest since April 2007. This figure is also well above the £98m monthly average sales for the sector over the last year.

Mixed Investment 20-60% Shares remained the second best-selling sector for the second consecutive month. Meanwhile, net retail sales of fund of funds came to £485m.

“April net retail sales at over £2bn were close to last year’s level and a big improvement on the previous month,” said Daniel Godfrey, chief executive of the IMA.

“Equity returned as the leading asset class with UK equity funds seeing a turnaround from negative to positive sales in April.”

“UK Equity Income was the top-selling sector followed closely by Mixed Investment 20-60% Shares, showing that investors continue to look for diversity.”