Equities and trackers see significant sales in October

Funds under management have increased by 20 per cent in one year to October, according to the latest figures from the Investment Management Association (IMA).

Net retail sales for the month of October also remain strong at £1.9bn. For the seventh consecutive month, equities have been investors’ favourite asset class, with net retail sales of £976m.

In a surprise move, UK All Companies funds were the best-selling sector for the first time since April 2004. The sector saw inflows of £307m, well above the sector’s average over the past 12 months, which were negative flows of £122m.

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In another turn of events, October’s worst-selling sector was UK Equity Income, which saw net outflows of £298m. It was the best-selling sector the month before with average net retail sales over the past 12 months at a strong £194m.

UK fund platforms remain the highest gross retail sellers at £6.8bn, a 53 per cent market share – it was 47 per cent in October last year.

All direct gross retail sales in October 2013 were £949m, which represents a market share of 7 per cent – down 1 percentage point from the year before.

In further proof of growing investor sentiment, net sales of Isas through fund companies and fund platforms totalled £30m in October 2013. This is compared to an outflow of £79m in the same month last year.

It wasn’t just equities seeing positivity. Tracker funds saw their highest net retail sales on record for the month, with £448m of inflows.

IMA chief executive, Daniel Godfrey, said as there has been strong inflows so far this year, it is on course for equity funds’ best year since 2000.