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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