Funds have benefitted from the highest quarterly net retail sales in two years as the stockmarket rally helped to offset the impact of RDR.
The latest edition of the Pridham Report shows net retail sales reached £5.3bn in the second quarter of 2013 as the continued rise of equity markets convinced investors to buy funds and helped to “mask” any negative effects caused by RDR.
Pridham Report editor Helen Pridham says: “Sales bounced back in the second quarter. The rally in equity markets played a major role.
“Demand for equity income funds helped to fuel the sales of many groups in the face of lower bond yields, and poor interest rates. Meanwhile wealth advisers ensured that their well-off clients moved their capital into ISAs at the beginning of the tax year to get the maximum benefit of their annual allowance.”
Standard Life Investments topped the league for net retail sales after witnessing inflows of £920.2m over the three-month period. Its flagship GARS absolute return fund and MyFolio suite of funds proved popular over the quarter.
Old Mutual Global Investors, Cazenove, BNY Mellon and BlackRock also strong net inflows over the quarter.
Looking to gross retail sales, M&G came first with £2.3bn in sales. M&G Global Dividend was its star attraction, highlighting investors’ continued interest in income.
BlackRock, Invesco Perpetual, BNY Mellon and Standard Life Investments complete the five funds with the highest gross retail sales over the second quarter.