Wealth Manager - the site for professional investment managers

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!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter