Equities  

UK equity income best-seller for sixth months running

UK equity income best-seller for sixth months running

UK equity income has been the best-selling Investment Association sector for the sixth month running, it has been announced.

There were net retail sales of £466m in November while property was the best-selling asset class with net retail sales of £366m.

UK All Companies was the worst-selling Investment Assocation sector and saw a net retail outflow of £287m.

Article continues after advert

This sector has been the worst-selling for five out of the past six months.

Daniel Godfrey, The Investment Association chief executive, said: “Net retail sales in November were £1.3bn, broadly in line with the average since the third quarter of 2014.

“Property and equity funds were the most popular asset classes during November with mixed asset funds also doing well.

“Investors sought a diverse spread of asset classes and Investment Association sectors, with the top five selling sectors encompassing equity growth, equity income, mixed asset, fixed income and property funds.”

Equity was the second best-selling asset class with net retail sales of £350m, down from £982m in October.

Meanwhile mixed asset was the third best-selling asset class in November, with net retail sales of £286m.

UK equity funds were the second best-selling after global, with net retail sales £111m – having been the best-selling region in October with sales of £835m.

North American equity funds were in third place, with net retail sales of £88m, while European equity funds continued to see negative sales with net outflows of £197m in November.

For the five fund platforms that provide data to The Investment Association – Cofunds, Fidelity, Hargreaves Lansdown, Skandia and Transact – net sales for November 2014 were £822m.

UK equity income and rankings Nov/Oct 2014

Investment Association Sector

Ranking in  November     2014

Net retail sales  in November     2014

Ranking  in October     2014

Asset class

UK Equity Income

1

£466m

1

Equity

Property

2

£366m

2

Property

Mixed Investment 20-60% Shares

3

£176m

4

Mixed Asset 

£ Strategic Bond  

4

£144m

18

Fixed Income

Global

5

£137m

7

Equity

Source: Investment Association

Adviser view

Jason Hollands, managing director, business development & communications at Tilney Bestinvest, said: “It is perhaps unsurprising that UK Equity Income funds continue to be the best-selling investment fund sector, with retail investors for the sixth month on the trot given that interest rates continue to languish at record low levels, bond yields aren’t anything to speak about and the average UK equity income fund has beaten the FTSE All Share Index for each of the last five years.”