Fund sales fall despite market rebound

Fund sales fell in May despite the market rebound according to the latest figures from the Investment Management Association (IMA).

Morningstar.co.uk Editors 30 June, 2003 | 7:03PM
Facebook Twitter LinkedIn
Net retail sales were £742.2m in May 2003 compared with £834.3m in May 2002. Sales were also down on April 2003 but that was a normal seasonal decrease as there is generally a surge at the end of tax year.

The most popular retail sectors last month were UK Corporate Bonds with sales of £593m and UK All Companies at £442m. Together they accounted for just under half of total gross retail sales. The worst selling retail sectors were Europe Excluding UK and Global Growth.

Intermediaries accounted for £514m of the £742m net retail sales. The next most important sales channel was sales forces and tied agents which accounted for £305m.

Sales direct from the public suffered net redemptions of £81m.

On a more positive note funds under management in Individual Savings Accounts (ISAs), at £26.5 billion, were at the highest level since they were introduced in 1999. But this can probably be accounted for by the rise in the markets and the fact that ISAs are a relatively new vehicle so redemptions tend to be low.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Morningstar.co.uk Editors  analyse and report on shares, funds, market developments and good investing practice for individual investors and their advisers in the UK.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures