Equities have beat fixed income for the first time in 12 months, says the latest data from the Investment Management Association (IMA).
Sales figures for September in the UK revealed equities outstripped funds, with net retail sales of £541 million.
The figure is more than eight times the average of £65 million for the past year and equities are the first asset to beat fixed income in the past year.
Investors have turned to bonds as a haven to hedge against eurozone economic problems and global growth declines that have pushed down yields on more conservative government bonds.
Fixed income funds dive
Fixed income took second place in September, clocking up net retail sales of £320 million, the lowest amount since £317 million of sales in September last year. Fixed income grabbed a 20.7% share of the market against an average 23% over the past year.
UK absolute return funds proved the favourite sub-asset, returning the best monthly sales figure for 36 months.
Strategic bond funds, global emerging markets, global and UK equity income were best sellers during the month.
Investors are also turning back to property, with net retail sales of £82 million, the highest since June last year.
Investment has returned to Europe as stocks with attractive valuations luring money back to the markets as equity funds reported the first net retail inflows since May 2011 at £150 million.
Global funds beat UK
The UK performed the worst, with a net outflow of £51 million. UK All Companies chalked up another ‘worst performer’ notch – the eighth in 12 months.
Funds under management totalled £629 billion, compared to £550 billion the previous year.
Jane Lowe, director of markets, said September’s sales figures showed a reversal of the outflows seen in August. “Net retail sales were again above £1 billion in September, reversing the unexpected outflows seen in August.
“Overall net retail sales of equity funds outstripped fixed income for the first time in a year. Global funds took the lion’s share of these net sales, against a notable outflow from UK equity growth funds.
“However substantial inflows were seen in both UK and global equity income funds, and a focus on income was apparent in three out of the top five selling sectors.”
