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IMA stats confirm great rotation is underway as equity funds attract £1.4bn
by Danielle Levy on Aug 29, 2013 at 11:03
UK equity income and global equity funds came back into vogue in July, with the latest Investment Management Association (IMA) statistics showing further evidence a great rotation from bonds into equities is under way.
The IMA said net retail sales reached £2.2 billion during July, the highest since April 2011. Equity fund sales outstripped other asset classes for the fourth month running with a £1.4 billion total net inflow, representing a new high since December 2010.
The Mixed Investment 20-60% shares sector proved the most popular during the month with net retail sales of £291 million, well above its monthly average for the previous 12 months at £198 million, while UK Equity Income attracted the second largest inflow of £283 million, above its monthly average for the previous year at £140 million. Global equity followed with a £226 million monthly inflow, while property also came back into focus, as the IMA's fifth most popular sector after North America.
Sterling corporate bond funds proved the worst-selling sector for July, with a net outflow of £131 million, providing more evidence that a great rotation out of bonds into equities is now finally under way.
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