Fund sales create new record as investments jump massively on a year ago, latest figures show

News - Funds

Written by Ray Clancy

Tuesday, 09 March 2010 09:17

Investment fund sales in January were the highest ever for the first month of a year with investors favouring global, Asian and US equities, according to the latest figures from the Investment Management Association.

It was an excellent start to the year with UK domiciled net retail sales of £1.8 billion, 55% higher than a year ago and the highest sales for any January on record with equities more popular than bonds and property the best selling IMA sector.

Funds under management totalled £470.1 billion at the end of January 2010, slightly below the £480.6 billion in December, but a third, 32%, higher than the previous January, when funds stood at £357.1 billion.

Equities started the year as the leading asset class, accounting for 30% of net retail sales, some £549 million. Bonds, which led sales during much of 2009, accounted for 17% of net retail sales, £317 million, in January, behind Other, £375 million, and Property at £373 million.

Within equities Europe and the UK were the least popular, with net outflows from all European and most UK Sectors, and UK All Companies the least popular Equity Sector of all. Last January UK Equity Income was the most popular Equity Sector. Similarly within Bonds Global products were the most popular, and Sterling Corporate Bonds the least popular.

Property is starting the year as tbhe top selling IMA sector with net retail sales of £373 million in January 2010. Property was the most popular IMA Sector in both October and November 2009, and was the fourth most popular IMA Sector during the year as a whole.

The lowest selling IMA Sector in January 2010 was Sterling Corporate Bonds, which had outflows of £228 million, a major contrast to last year when is was the best selling IMA Sector in 2009, coming top for the first eight months of the year.

ISA sales started the year with net retail sales of £174 million, down 17% on December but massively ahead of the £2 million achieved in January 2009.

The report also shows that institutional funds achieved net sales of £932 million in January, nearly three times the £330 million achieved in December and ahead of the £756 million in January 2009. In contrast to retail sales, equities saw an outflow of £340 million and Bonds were the highest selling asset class.

Overseas domiciled funds sold to UK investors in 2009 totalled £1.6 billion net retail, in contrast to the outflow of £663 million in 2008.

‘Equities proved more popular than Bonds, in contrast to a year ago. Equity investors appear to be becoming more adventurous, preferring the Global, Asian and North American Sectors to the UK and Europe,’ said Richard Saunders, Chief Executive of the IMA.

‘Property was the most popular IMA Sector in January, as it had been in the last quarter of 2009. By contrast, the least popular IMA Sector in January was Sterling Corporate Bond, which had topped the sales charts for the first eight months of last year,’ he added.