Investment fund sales suffer June gloom

The weather this summer may have improved from last year but fund sales are not basking in the same glow. Net retail, institutional and Individual Savings Accounts (ISAs) sales all dropped in June compared to the same period in 2000 according to the latest figures from the Association of Unit Trusts and Investment Companies (AUTIF).

Morningstar.co.uk Editors 30 July, 2001 | 2:25PM
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Comparing June 2001 with June of last year, net retail sales fell to £632m from £1.149 billion while net redemptions by the institutional market were £2.4 billion, up from £71.5m. AUTIF said that the institutional figure included a withdrawal of over £2 billion by a single client, which hit a number of groups.

ISA providers also suffered with net sales of ISA products decreasing to £463.5m in June from £638.7m in May 2001 and from £737m during June 2000. It is common for fund sales to drop from May to June as summer tends to be a slower sales period but a fall from the same time last year was more significant.

Institutional and

retail investors both favoured North American funds with net sales for each group reaching £88.5m and £148.6m respectively. Also neither group was taken with the Europe excluding UK sector where net redemptions were £359.7m in the institutional market and £106.4m in the retail one.

Yet opinions diverged where retail investors ranked the UK All Companies first in terms of net sales (£251.8m) as their institutional counterparts placed it bottom as the worst selling sector (-£1.388 billion). Global Emerging Markets was the first choice of institutional investors with a net £94.5m of funds being sold while retail investors avoided Japan, with net redemptions of £47.6m.

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