Net retail sales showed a slight increase at £897.4m this May compared with £807.2m at the same time last year. In contrast net sales of Individual Savings Accounts (ISAs) were down to £459.4m compared with £633.0m last year. All sales were well down on April 2002 but such falls conform to the normal seasonal pattern.
However, net institutional sales were only £102.2m compared with £782.6m last May. This continues a trend, which was apparent last month, for institutions such as pension funds to take a more negative view of the industry.
Income funds continued to take a growing share of the retail market. The UK Corporate Bond sec
tor increased its share from of all investment fund ISA sales to 19% in May from 16% in April.
The fastest growing sector in relative terms was Far East Excluding Japan. But, since it started from a low base, it still only accounted for 3% of gross retail sales.
The IMA also said that anecdotal evidence suggested that novice investors were generally sticking to lower risk sectors. Experienced investors, in contrast, tended to be more adventurous.
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