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Equity sales hit two-year high as investors continue to sell fixed income

Net retail sales of equities have hit a two-year high in February as investors continue to move money out of fixed income, according to the Investment Management Association.

Equity funds reached net retail sales of £940m in February, the highest level since the £1.2bn recorded in April 2011.

Four of the top five best-selling sectors were equities while the fixed income sector continued its downward trend having recorded a net outflow of £163m in February 2013, the highest seen since July 2008.

The IMA Mixed Investment 20-60% Shares Sector was the most popular in February with £232m in net retail sales. The Asia Pacific ex-Japan and UK Equity Income sectors, were second and third with sales of £194m and £169m respectively.

The IMA £ Corporate Bond sector was the least popular sector in February 2013 with a net retail outflow of £220m. The monthly average for the sector over the past 12 months was an inflow of £112m.

Total funds under management reached another record high of £706bn in February. This is 14 per cent higher than the same point in 2012.

IMA chief executive Daniel Godfrey says: “Strong sales and favourable markets in February helped lift the funds under management in authorised funds over £700 billion for the first time.

“Retail investors were putting more into equity funds than at any time for nearly two years and this was broadly spread with UK, European, Asian and Global equity funds all seeing significant net investment. For a second month retail investors reduced their fixed income holdings.”

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  1. One would infer from this article that fixed income yields are picking up, and that annuity rates should start to improve shortly…. that it unless annuity providers are profiteering and refusing to pass those yields on to consumers!

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