Fund sales suffer even more pain

Fund sales in February were even worse than the dire figures for the same time last year according to the Investment Management Association (IMA). Retail net sales fell to £194m compared with £670m last February while in 2000, near the peak of market, the corresponding monthly figure was £1,534m.

Morningstar.co.uk Editors 1 April, 2003 | 4:42PM
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Net sales of funds in Individual Savings Accounts (ISAs) fell although not as steeply with net sales at £193m compared with £319m in February 2002. Both ISA and retail sales were up on January 2003 but this is a normal seasonal increase in the run-up to the end of the tax year.

Intermediaries also are accounting for a shrinking proportion of ISA sales. Only 26% of ISA sales were through i

ntermediaries although this channel accounted for 58% of all retail fund sales.

The UK Corporate Bond sector remains the most popular with 35% of retail gross sales followed by 31% for UK All Companies. The next most popular sector was UK Equity Income with only 6% of sales.

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