What a difference a day makes

The Investment Management Association has revealed the most popular fund sectors of 2013.

At the end of January the Investment Management Association (IMA) published its summary of fund sales for 2013. This covers nearly 2,500 UK domiciled funds, with a total value at the end of 2013 of £770bn.

2013 was a much better year than 2012 for fund managers, and not just because most major equity markets delivered good returns. Individual investors were more confident, which the numbers highlighted in a variety of ways:

Taking a broad view of assets classes rather than individual sectors, what was most notable was the move into equity funds and away from fixed income (bond funds), where net sales dropped to virtually zero. Some commentators have taken this as the beginning of “the great rotation” from bonds to equities. However, the biggest asset class sales growth (in percentage terms) was for the revitalised property sector, as the graph below shows.

Chart showing the retail sales of funds across asset classes. 2012 vs 2013