Welcome to our new website! Let us know what you think..

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Bond funds suffer first annual outflow as investors pile into equity

Bond funds suffer first annual outflow as investors pile into equity

Bonds were the biggest losers in 2013, as the out of favour asset class saw net outflows for the first time ever despite a surge in retail fund sales.

Equities were the main beneficiary, attracting £11.4 billion in net retail sales, the highest since 2000, while total funds under management reached a record £770 billion, a 16% increase from a year earlier.

Sentiment around fixed income has been affected by the threat that the US will taper its asset purchases, and by liquidity fears in emerging markets.

'Equity funds took by far the largest share of the net inflows from investors. After a number of years with the strongest net sales, fixed income took no new money in 2013. Both mixed asset and property funds saw stronger inflows than in 2012,' Daniel Godfrey (pictured), the IMA chief executive, said. 

Fixed income saw small outflows of £17 million, following inflows of £5.6 billion in 2012.

On the equity side, global funds were the best-selling region for the sixth year in a row with inflows of £4 billion. The UK was second, experiencing a spike in popularity with £2.9 billion in sales after being the worst selling region in 2012, with an outflow of £944 million.

Leave a comment
Citywire TV
Play Gervais Williams: the real reason to worry about Quindell

Gervais Williams: the real reason to worry about Quindell

Citywire AA-rated manager Gervais Williams has argued that sentiment is the true danger to Quindell.

Play AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

AA-rated Lofthouse: 'maverick' tobacco settlements won't stop M&A

Henderson International Income trust manager Ben Lofthouse shares his thoughts on recent developments in the tobacco sector in this video.

1 Play Renewable energy: what I found on my solar farm trip

Renewable energy: what I found on my solar farm trip

Renewable energy is attracting a lot of investor interest, so I headed to the UK's largest solar farm to find out more.

Your Business: Cover Star Club

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Profile: Quilter Cheviot boss Baines sees more consolidation ahead

Nineteen months on from the merger of Quilter Cheviot chief executive Martin Baines says the deal is now paying dividends.

Wealth Manager on Twitter