Retail investment sales plunge 70% in September compared to 2013

28th October 2014

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Net retail sales in September were £702 million, down 70%  from £2.3 billion the same time last year, figures from the Investment Management Association have revealed.

September also saw an inflow of £106 million into funds in ISAs, up from £65 million in the same month of 2013.

UK equity income was the bestselling fund sector for the fourth consecutive month in September with £606 million in net retail sales,

In second place  was property, with £315 million, followed by mixed investment  40-86% shares with £217 million. Fourth was Asia Pacific excluding Japan with £165 million and in fifth place was targeted absolute return with £148 million.

Daniel Godfrey, chief executive of the IMA, said:“Following a strong first half of the year, retail sales of funds slowed in August and September, with retail investors declining to further increase their holdings of equity funds.

“However, there was wide variation in the experiences of different types of equity funds with UK and European funds seeing net outflows whilst Global and Asian equity funds doing better. Amongst UK equity funds, UK Equity Income funds had another good month whilst UK All Companies funds saw their biggest retail outflow ever.”

Jason Chapman, managing director of Willis Owen, the discount broker said: “The year-on-year boost in ISA investments is driven in part by the NISA £15,000 annual allowance which was introduced over the summer.”

Chapman added: “The dominance of superstar fund manager Neil Woodford shows no sign of abating, with sales of his new fund continuing to top the most popular funds among our customers in September. Interestingly, our Cash Reserve facility also proved popular last month, suggesting that turbulence in the global markets is prompting a ‘wait and see’ approach from investors. This is echoed by the fact that net retail sales of funds has slowed in the last two months.”

Willis Owen’s top selling funds in September 2014 were:

1.    CF Woodford Equity Income C Fund

2.    Threadneedle UK Equity Income Z Fund

3.    Threadneedle UK Equity Alpha Income Z Fund

4.    Cash Reserve

5.    Henderson Fixed Interest Monthly Income Fund

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