Funds under management as at the end of 2013 reached a record £770 billion (£1,275 billion), an increase of 16 per cent from 2012, according to data from the UK's Investment Management Association.

Funds under management as at the end of 2013 reached a record £770 billion ($1275 trillion), an increase of 16 per cent from 2012, according to data from the UK's Investment Management Association.

Equity funds in 2013 saw their highest net retail sales since 2000 at £11.4 billion, while fixed income funds, which were the best-selling in 2012, saw their first ever net retail outflow of £17 million, the firm said.

Meanwhile, net retail sales were £20.4 billion in 2013, up from £14.3 billion in 2012 and net institutional sales for 2013 were £1.7 billion.  

Global equity funds remained the best-selling in 2013 for the sixth consecutive year with net retail sales of £4 billion, while the UK region was in second place with net retail sales of £2.9 billion, the highest since 2001.

European equity funds were the third best-selling in 2013 with net retail sales of £2 billion and North American equity funds were the fourth place, with net retail sales of £1.1 billion, the highest since 2001.

The top five selling IMA sectors for 2013 were mixed investment 20-60 per cent shares with net retail sales of £3.1 billion, the highest since 2010; targeted absolute return with net retail sales of £2.2 billion; UK equity income with net retail sales of £1.8 billion; global equity income with net retail sales of £1.8 billion; and property, with net retail sales of £1.5 billion.

In contrast, the worst-selling IMA sector in 2013 was corporate bond with an outflow of £1.7 billion, the lowest net retail sales ever recorded for the sector since it launched in 2008. This sector was worst-selling for seven months during 2013.