LONDON, May 28 (Reuters) - 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)