Corporate bond bonanza helps sales recovery

Investment fund sales seem to be responding positively to the market upturn according to the latest monthly sales figures from the Investment Management Association (IMA).

Morningstar.co.uk Editors 26 August, 2003 | 5:42PM
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Net retail sales of £863.0m in July 2003 were over 50% up on the equivalent month last year. Last month’s sales were also only slightly down on the figures for June despite the fact there is normally a seasonal decrease over the summer.

By far the most popular sector among retail investors was UK Corporate Bond. Net sales of £422.4m accounted for nearly half of the month’s total sales.

The next most popular sectors were UK Equity Income with £152.0m, Far East Excluding Japan with £97.1m and UK All Companies with £77.3m. Japan is rapidly climbing up the list with sales of £19.8m last month compared with redemptions of £2.0m the pr

evious month.

Europe Excluding the UK was easily the least popular sector with net redemptions of £74.5m. UK Money Market was next with net redemptions of £26.7m.

The intermediary channel was by far the most popular with £596.6m of retail net sales. In contrast, investors withdrew a net £75.1m from the direct public channel.

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