Sector took £369m of retail money in June and £150m institutional
UK Corporate Bond was again the top-selling IMA sector in June for retail and institutional investors.
The sector took a net £369m of retail money during the month, of which Isas accounted for £115m, and a net £150m of institutional money, according to monthly IMA figures.
The second most popular sector for retail and institutional investors was UK All Companies, while the worst-selling sectors for both retail and institutional money were Europe ex-UK followed by UK Smaller Companies.
Funds that sold well with retail investors but poorly with institutions include Cautious Managed, UK Money Market and Specialist vehicles.
Institutional investors instead favoured Japan, UK Gilt and Global Growth funds, all of which ranked relatively poorly in terms of retail sales.
One of the biggest areas of divergence between retail and institutional investment was in the Global Growth sector, which was ranked ninth most popular sector among institutional investors with a net £17.6m in sales but saw net redemptions of £4.4m from retail investors.
Overall, investment fund sales were higher in June than both May 2003 and June 2002, with net retail sales rising to £918m.
This represents a 24% increase over the month, or 45% over the same period last year. It is the first year-on-year increase in net retail sales since October 2002 and follows a levelling-off of falling sales numbers over the previous three months.
However, net Isa sales were £294m in June, a drop of 14% from May and a 2% fall year on year. Gross industry sales rose to £4.3bn, up from £3.4bn in May and £3.9bn from the previous June. Net industry sales reached £1.5bn, up 69% on May 2003 and more than 150% on June 2002.
Some 66% of June's retail investment of £1.636bn came via intermediaries, 20% through tied agents, 9% direct from the public and 5% from private clients.
Despite an overall positive picture in investment fund sales, the second quarter of 2003 saw the number of regular savings plans fall to 1,798,125, down from 1,887,905 in the first quarter.
The amount of money going into savings plans also shrank from £464.1m in the first quarter to £428.1m in the second, continuing a trend that began in early 2002.
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