Retail fund sales level off

Retail sales of investment funds in May were roughly in line with those made at the same time last year according to the latest monthly statistics from the Investment Management Association.

Morningstar.co.uk Editors 24 June, 2002 | 5:07PM
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Net retail sales showed a slight increase at £897.4m this May compared with £807.2m at the same time last year. In contrast net sales of Individual Savings Accounts (ISAs) were down to £459.4m compared with £633.0m last year. All sales were well down on April 2002 but such falls conform to the normal seasonal pattern.

However, net institutional sales were only £102.2m compared with £782.6m last May. This continues a trend, which was apparent last month, for institutions such as pension funds to take a more negative view of the industry.

Income funds continued to take a growing share of the retail market. The UK Corporate Bond sec

tor increased its share from of all investment fund ISA sales to 19% in May from 16% in April.

The fastest growing sector in relative terms was Far East Excluding Japan. But, since it started from a low base, it still only accounted for 3% of gross retail sales.

The IMA also said that anecdotal evidence suggested that novice investors were generally sticking to lower risk sectors. Experienced investors, in contrast, tended to be more adventurous.

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