Latest figures from the Investment Management Association

Wednesday, 06 January 2010 10:35

Adrian Lowcock, Senior Investment Adviser at Bestinvest, discusses the latest figures from the Investment Management Association

• Net retail sales in November over £2 billion for the eighth month running
• Net retail sales year-to-date are 10 times higher than a year ago
• Net ISA sales almost £2.6 billion year-to-date - the best since 2002
• Funds under management total £467 billion - 38% higher than in November 2008
• Property funds the highest selling IMA sector for the second month running

‘Commercial property prices finally reached a bottom in July 2009, having fallen over 78% from their peak in May 2007’, comments Lowcock. ‘In July we turned positive on commercial property, as listed property funds had already rebounded on the belief the worst was behind us. In October and November we have seen property funds sales top the IMA sectors as confidence has returned to the market and net ISA sales remain strong on the back of a successful ISA top up season.

‘Considering the recent movements in valuations of property and the continued uncertainty on the strength of the economic recovery we favour prime property assets (i.e. those with long leases, secure tenants and low vacancies) and where there is scope for asset management opportunities to increase rents. We prefer ‘bricks & mortar’ real estate funds, rather than funds of listed property securities. Some funds have recently had significant inflows and with cash being a drag on performance, we prefer funds with less than 20% cash. Our recommended property funds are New Star UK Property and M&G Property Portfolio.’