November fund sales reach £1.7bn as investors return to equities


Net retail sales reached £1.7bn in November, the highest figure recorded since July 2015, according to the latest Investment Association data.

Equities were the bestselling asset class for the seventh consecutive month with net retail sales of £1.1bn, up from £720m in October and £354m in November 2014.

The UK was the bestselling region for equity funds with £611m of sales, while UK Equity Income returned as the bestselling sector with net retail sales of £448m.

Meanwhile, Europe was the second bestselling region for equity funds with sales of £367m, followed by Japan at £134m.

However, the month did not surpass July’s total retail sales of £3bn – the highest since April 2014.

Investment Association interim chief executive Guy Sears says: “Net retail sales hit their second highest levels of 2015 at £1.7bn in November.

“This was mainly driven by investors looking to equity funds for returns, with UK and European focused products leading the way. We also saw renewed investor appetite for Japanese equity funds as the sector returned to the top five selling with net retail sales nearly double their 12-month average.”

Tilney Bestinvest managing director Jason Hollands says the Investment Association sales data for November showing popularity in equity sectors “is a reminder that retail investment flows into stock markets have an unfortunate habit of being ill-timed”.

He says: “Quite possibly much of this was spurred by the belief that after a period of turmoil emanating from the slide in China, investors believed the worst was over and there were bargains to be had.”