Retail investors becoming more upbeat

Retail fund investors seem to be getting decidedly more optimistic judging by the August sales statistics from the Investment Management Association (IMA).

Morningstar.co.uk Editors 30 September, 2003 | 5:47PM
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For the third month running the figures for net retail sales were up on the corresponding month last year. This August such sales were worth £765.7m compared with £548.9m for the same time last year.

Last month was also the first time this year that the UK All Companies sector was more popular in terms of gross retail sales than UK Corporate Bonds. The growing popularity of stockmarket investment compared with bonds is also a sign of increasing bullishness.

UK Corporate Bonds is still the most popular sector in terms of net retail sales but its share fell from nearly half in July to about a third in August. Out of total net retai

l sales in August it accounted for £252.7m compared with £148.5m for UK All Companies and £142.8m for UK Equity Income.

Other more aggressive cyclical sectors were also popular. Global Emerging Markets was the fourth most popular sector at £83.8m. There was £51.7m in Far East Excluding Japan and £21.5m in Japan.

As usual intermediaries were the most popular distribution channel with about two-thirds of gross retail sales. However, 53% of sales of Individual Savings Accounts (ISAs) were through sales forces or tied agents.

According to IMA estimates fund supermarkets accounted for about £2.7 billion of ISA funds under management out of an industry total of £28.7 billion.

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