investors stick with equities flee corporate bonds

Equities were the bestselling asset class among fund investors for a third month, according to the Investment Management Association (IMA).

investors stick with equities flee corporate bonds


Equity funds racked up net retail sales of £720n during November last year. This is the highest level seen since April 2011, when sales were £1.25bn.

Net retail sales of fixed-income funds dropped sharply to £43m, their lowest since October 2008 – when there was an outflow of £142m. The IMA £ Corporate Bond sector aaw “significant outflows”, the trade body added.

IMA chief executive Daniel Godfrey said: “Net retail sales were strong again in November with equity funds the strongest sellers for the third month in a row. This is partly due to investors preferring equity income over fixed income for income generation.”

Looking at sectors, IMA UK Equity Income was the popular with retail investors on the back of £221m in sales. The sector was the second bestselling in October 2012.

IMA £ Strategic Bond followed with £169m, while IMA Global Emerging Markets took £162m. IMA Asia Pacific Excluding Japan won £154m in net retail money and IMA Mixed Investment 40-85% Shares gained £134m.Funds under management in the IMA universe reached £652bn during November 2012, a 15% increase on the levels seen one year earlier. November’s net retail sales were £1.2bn. 




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