Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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 Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter