LONDON May 28 Sales of UK equity income funds
to retail clients hit a record monthly high of 500 million
pounds ($840.12 million) in April, while net retail fund sales
reached a three-year-high, a trade body said on Wednesday.
The Investment Management Association (IMA), which
represents investment firms managing some 4.5 trillion pounds of
assets, said net retail fund sales hit 2.9 billion pounds for
the month, up from 2 billion for the same period last year, with
equity the best-selling asset class.
Daniel Godfrey, chief executive of the IMA, said that 1.3
billion of the net new money came from investors making the most
of their Individual Savings Account (ISA) allowances before the
end of tax year deadline on April 5, as well as topping up their
ISAs at the start of the new tax year.
Adrian Lowcock, senior investment manager at fund
supermarket Hargreaves Lansdown, said the strong performance of
stock markets in 2013, combined with low returns on cash, had
helped drive up demand for the investments.
"UK equity income funds have been popular with investors as
they have grown more cautious in recent months following the
recent strong performance of equity markets."
($1 = 0.5952 British Pounds)
(Reporting By Jemima Kelly; editing by Simon Jessop)