The ultimate best-selling IMA sector in June was the UK Equity Income sector which recorded net retail sales of a historic £1.4bn.
Laith Khalaf, senior analyst, Hargreaves Lansdown, notes that the 'Woodford Effect' is a clear example of investors backing a fund manager rather than a particular asset class, or market.
"Given the direction of markets is impossible to predict with any accuracy, this is a pretty sensible way to go about investing," he said.
The UK emerged as a top performer in other categories as well, beating other regions to emerge as overall best-seller for equity funds in June, as net retail sales soared to £870m, the highest since March 1998.
On the other side of the scale, the worst-selling IMA sector in June was the UK All Companies which was hit by net retail outflows of £421m. The last time this sector landed at the bottom was in May 2013.
Total funds under management were up 11%, measuring £798bn in June compared to £717bn in the same month last year. Net institutional sales totalled £437m this year, while last year saw sales plummeting and £1.4bn outflows.
Top five sectors
Runner-up after the UK Equity Income sector was the property sector with net retail sales of £316m. Mixed Investment 20-60% Shares saw net retail sales of £222m and £ Strategic Bond collected net retail sales of £171m. Lastly, Mixed Investment 40-85% Shares saw net retail sales of £154m.
Champions of asset class
Reflecting the investor mood, it was not surprising that equity was the best-selling asset class for the fifteenth consecutive month with net retail sales amassing £1.2bn.
Number two was property, raking in net retail sales of £316m. And in third place, mixed asset class climbed the asset class podium showcasing net retail sales of £307m.
Daniel Godfrey, IMA chief executive, highlighted these trends in June:
“June was another strong month for retail fund sales with equity funds again doing well. Property funds also continued to be popular, with property the second best-selling asset class in June. Mixed asset funds were not far behind.”
Regional variation
While the UK trumped other regions for equity fund sales, global equity funds broke in at second best-selling place with net retail sales of £263m. This is slightly below the average of the previous 12 months.
Following on, Japan, Europe and Asia featured net retail sales of £86m, £74m and £72m, respectively.
At the bottom of the table, North American equity funds recorded outflows of £140m.
