Fund sales recover from dire September

Investment fund sales in October recovered from their dire levels in September but were still well behind those of the equivalent month last year.

Morningstar.co.uk Editors 26 November, 2001 | 4:44PM
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Total net sales of unit trusts and Open ended investment companies (OEICs) increased to £776m in October from £92m in September according to the Association of Unit Trusts and Investment Funds (AUTIF). But last month’s figures were well down on the £1,845m of October 2000.

Retail sales did particularly badly. Net retail sales in October 2001 were £247m compared with £47m in September and £1,377m last October. In contrast, institutional sales were slightly above their October 2000 level last month.

Another indication of bearishness among UK retail investors was their preference for bonds over shares. The two most popular sectors i

n October were UK Corporate Bonds and UK Other Bonds.

In contrast, Japan funds – which traditionally do well during times of economic expansion – were in one of the worst selling sectors. UK Equity Income funds were also unpopular among retail investors.

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