You are here: Home - Investing - Experienced Investor - News -

Woodford boost pushes UK equity income sales to £1bn in July

Written by:
Demand for Neil Woodford’s fund has helped make the UK equity income sector the best-selling category for a second month in a row.

The latest statistics form the Investment Management Association (IMA) reveal the sector saw net retail sales of £1bn in July, meaning it accounted for more than half the entire £1.9bn of total net retail sales. It also accounted for the majority of equity fund sales, which were just over £1bn.

The second best-selling sector was property, with sales of £304m.

Sales of tracker funds also reached record highs, with net retail sales of £532m.

The launch of Woodford’s fund has helped UK equity income sales to soar, with the manager’s fund having swelled to nearly £2.4bn now, compared to the £1.6bn it stood at following the close of the offer period in June.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “Last month we saw the Woodford effect propel UK Equity Income to the top of the sales charts.

“We suspect this month we are seeing a ripple of that effect, as coupon-clipping investors in the Invesco Perpetual High Income fund stayed for the ex-dividend date on 1st July, then switched across to Woodford’s new fund.

“Indeed it is notable that the worst selling sector in July was UK All Companies, the sector in which the Invesco Perpetual High Income fund now sits.”

Equity continued to be the best-selling asset class, followed by mixed asset and property. The UK was the best-selling region, while Asian and global funds saw inflows of £203m and £163m respectively.

By contrast, European and North American funds both saw outflows, a reversal of the trend of the previous month.

IMA director of public policy Jonathan Lipkin said: “Net retail sales remained strong in July at £1.9bn, with equity funds again leading the way.

As in June, a key feature was very strong sales of UK Equity Income funds, which took in £1bn.”

UK fund platforms accounted for a 59 er cent market share of gross retail sales, at £8.1bn. Cofunds, Fidelity, Hargreaves Lansdown, Skandia and Transact reported net sales of £945m. For these five fund platforms, funds under management at the end of July were £172bn, compared with £153bn a year earlier.

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week