Fund sales dipped in September

Retail sales of investment funds dipped last month according to the latest figures from the Investment Management Association (IMA).

Morningstar.co.uk Editors 30 October, 2003 | 3:20PM
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Net retail sales were £573.1m in September compared with £765.4m in August. However, last month’s figures were well up on the £92.1m in September 2002.

Last month’s fall marks a reversal of the strong upward trend in fund sales over the summer. Investors seem to be returning to the market only cautiously.

Another indication of investor wariness is their reluctance to invest without advice. There was a net withdrawal of £107.3m from the direct sales channel over the month. The vast majority of sales were accounted for by intermediaries or sales forces and tied agents.

Investors also seem to favour domestic sectors overall

. The four best-selling sectors were British-based with UK Corporate Bond once again the most popular followed by UK Equity Income and then UK All Companies.

However, there was some interest in international sectors that are most likely to give investors exposure to a global recovery. Far East Excluding Japan was the most popular followed by Global Emerging Markets and Japan.

The least popular sector of all was UK Smaller Companies with net redemptions of £70.1m. It was followed by Europe Excluding UK with net redemptions of £66.6m and North America at £53.3m.

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