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
Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Gutteridge puts the heat on Odey's asset allocation maestro with a couple of tough questions.

Brewin's Foster & Gutteridge: searching for the yield of dreams

Brewin's Foster & Gutteridge: searching for the yield of dreams

Guy Foster and Ben Gutteridge discuss the latest upbeat US payroll report and how it has increased the probability of a first hike in interest rates in June.

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter