Retail investors continued to pour money back into property funds in April after a period of outflows from the sector, according to IMA statistics.
Property funds benefited from inflows of £71m over the month which came on top of inflows of £21.4m into the sector last month. The move back into property comes after four months of outflows as investors worried about liquidity in the sector.
The newly launched IMA Absolute Return sector also had a strong month with inflows of over £170m.
However, the UK Other Bond sector was the most popular UK domiciled net retail sales sector with inflows of £456m. The sector with the biggest outflows in April 2008 was UK All Companies, with net outflows of £182m.
In total, net retail sales in April were £1.5bn which although down on last April’s £1.8bn is the best performance for a year. Of this, £630m was invested in bond funds, followed by £478m in equity funds. Institutional holdings of unit trusts and OEICs saw net inflows of £722m with money market funds accounting for net inflows of £365m.
Funds under management of UK domiciled investment funds were £450.3bn in April, a rise of 4% from March 2008 but 2% lower than April 2007.
Net sales of ISAs were £391.1m in April, higher than the £68.6m seen in March 2008 but down 31% from the £568.3m in April 2007 (as of April 2008 PEPs were merged into stocks and shares ISAs so for comparison purposes, the IMA ISA data for periods prior to April 2008 combines PEPs and ISAs).
The most popular UK domiciled ISA sector in April 2008 was UK All Companies, accounting for 17% of gross ISA sales. In net terms the most popular ISA sector was Cautious Managed.
Net retail sales of overseas domiciled funds in April 2008 were £9.8m and £6.6m for overseas domiciled investment fund ISAs, partly reversing the previous month's outflow of £16.5m.IFAonline
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