UK fund assets exceed £800 billion in record-breaking year

upward graph 410Funds under management in the UK asset management industry have exceeded £800 billion (€1.07 trillion), a new record.

Funds under management increased by 8.2% to £834 billion in 2014 and net retail sales reached £20.8 billion, the highest since 2010, according to data from trade group the Investment Association.

Net institutional sales also showed a significant increase, jumping from £2.6 billion in 2013 to £11.4 billion in 2014, around half of which was accounted for by insurance assets moved into open-ended investment companies (Oeics).

Equities were the best-selling asset class of 2014 with net retail sales of £8.6 billion, though this was a decrease from £11.5 billion in 2013.

The second best-selling asset class was mixed asset, with net retail sales of £3.9 billion.

UK equity income was the best-selling Investment Association sector, gathering £6.3 billion, while the property sector had a record-breaking year with net retail sales of £3.8 billion.

Funds under management in tracker funds also hit a new record, increasing by 23.5% to £93 billion at the end of 2014.

Daniel Godfrey, Investment Association chief executive, says: “Investors continued to favour equity of all the asset classes in 2014, with UK equity income funds enjoying a seven month streak as the best-seller from June to the end of the year.”

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