Equity income funds set record for sales in April

UK equity income funds set a record for net inflows in April, according to the latest figures from the IMA.

Funds within the IMA UK Equity Income sector brought in net inflows of £500m in April, the highest inflow recorded for the sector since IMA records began in 1992.

The record increase was aided by a rush to equity income funds at the end of the Isa season, which ended on April 6.

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IMA chief executive Daniel Godfrey said £1.3bn of the £2.9bn total in the month came “from investors making the most of their tax-free Isa allowances by rushing to meet the end of tax year deadline or topping up at the start of the new one”.

The search for yield was a driving force for investors in April as the IMA Property sector was the clear second-highest selling sector, bringing in £446m of net new money in April.

Equities were the dominant asset class for sales, bringing in £1.4bn of the £2.9bn total in the month.

Several sectors also snapped losing streaks that had persisted throughout the first quarter of 2014, with the IMA North America, Asia Pacific excluding Japan and Global Emerging Markets Bond sectors all gaining money following three months of net outflows.