According to the IMA’s monthly investment fund statistics, equity funds witnessed net retail sales of £550m during October, making it the leading asset class.
This is the highest level recorded since April 2012 and is in contrast to the average monthly outflow of £9m that has been seen over the last year.
Fixed income was the second best-selling asset class with net retail sales of £336m. This is the second month bond funds have lost the top spot to equities, although October’s sales were a slight improvement on the £320m of net sales in September.
Total net retail sales were £924m during October, compared with £655m one year earlier . Funds under management rose to £632bn.
IMA chief executive Richard Saunders said: “Net retail sales remained buoyant in October, with investors adding just under £1 billion to their portfolios.
“Equities were the leading asset class for the second consecutive month. Income funds are still popular with investors, accounting for three of the top five sectors in October.”
Global Emerging Markets was the best-selling IMA sector in October, taking the top spot for the first time with net retail sales of £228m. The sector’s monthly average was just £86m over the previous year.
UK Equity Income was second best-selling sector last month, followed by £ Strategic Bond, Mixed Investment Shares 20-60% and Global Equity Income. UK All Companies was the worst-selling sector for the third month running with a net outflow of £275m.
Global portfolios were the most popular on a regional basis, gaining £349m over the month. European funds saw net retail sales of £175m, Asian portfolios took £71m and North American gained £26m. UK and Japanese funds saw net outflows, losing £64m and £7m respectively.
