Figures from the Investment Association show £707m of fund sales in September on the most popular fund platforms (Cofunds, Fidelity, Hargreaves Lansdown, Old Mutual Wealth and Transact). Overall net sales for September 2015 were £1.4 billion. Unwrapped funds saw £483m in inflows, ISAs £202 million and Insurance Bonds £7 million.
The figures showed that equity was the best-selling asset class for the fifth consecutive month with net retail sales of £1.1 billion. UK Equity Income remains the top-selling sector with net retail sales £445 million for the third month in a row. This was followed by UK Targeted Absolute Return, Europe ex UK and Property. Asia Pacific funds continue to see outflows over the month.
Investors were not encouraged by the Federal Reserve’s decision to keep US interest rates on hold and fixed income funds saw the highest outflow in net retail sales since June 2013 at £515 million. Overall net retail sales were £1.1 billion.
Heather Ferguson, investment analyst, Hargreaves Lansdown said: “September fund sales in pensions even beat those made in March (£467m) which is traditionally a bumper month as investors seek to beat the tax year deadline. These fund sales are a combination of both new money entering the pension system and transfers from existing pension pots.”
On the weakness of Asia Pacific funds, she added: “Flows from specialist Chinese funds…slowed to £11m in September, compared with average monthly withdrawals of £68m over the previous 3 months. Clearly sentiment towards emerging markets is still negative, though a lot of bad news looks like it’s already baked into valuations.”
