Revamped Targeted Absolute Return best-selling sector of May

Targeted Absolute Return saw the greatest inflows of all sectors in the month preceding its revamp, according to the latest figures from the Investment Management Association (IMA).

With net retail sales of £255m, the sector saw figures well above its 12-month average of £97m per month. The sector was revamped at the beginning of June, adding ‘targeted’ to the sector name and allowing managers to select a time period other than 12 months over which they aim to produce a positive return.

The latest figures from the IMA show total fund net retail sales was more than £2bn for May 2013.

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After the Isa season of March and April, fund net retail sales typically drop in May, although this year is a different story. IMA chief executive, Daniel Godfrey, said, “Investors have been making significant net investment across all the main asset classes. Equity funds received the biggest slice of investors’ funds with global equity income and global emerging markets as the two equity sectors making it into the top five best-selling IMA sectors.”

For May, Isa funds under management across fund companies and five fund platforms – Cofunds, Fidelity, Hargreaves Lansdown, Skandia and Transact – that provide data to the IMA totalled £126bn. Net sales for Isas was £222m through fund companies and platforms, significantly higher than sales in May 2012 which saw inflows of £98m.

By region, global equity funds remained investor favourites with net retail sales of £351m in May 2013. North America was the second best-selling sector with sales of £146m – well above its £11m average per month over the previous 12 months. UK equity funds were the third best-sellers with sales of £102m. Interestingly, the worst-selling sector was UK All Companies, which saw outflows of £102m.