ISA sales bounced back from a difficult January by recording a £31.7m net inflow last month, the latest IMA statistics show.
While lower than the £88.1m figure for February 2007, ISA sales were back in the black following January’s £68.4m outflow.
UK All Companies was the most popular sector in gross terms, with £79.1m ISA sales; while Cautious Managed topped the list in net sales, with £19.6m inflows.
Total net retail sales were also well below the corresponding month last year, down from £943m to £308.8m. Of the net retail sales, £197m was invested in bond funds and £170m in balanced funds.
The Specialist sector saw the highest net retail inflows of £276m, of which £119m was in commodity funds, while the UK All Companies sector was hit with £222.9m outflows.
Property funds continued to see outflows, but only £7m in February, compared to a £77.3m outflow in January.
UK domiciled investment funds under management climbed 2% from January 2008 to £441.3bn, but were slightly lower than the £443.9bn seen in February last year.
“This month sees positive sales figures for both overall net retail sales and ISAs,” IMA director of markets Jane Lowe says.
“Although it is too early to tell, these modest figures may indicate that consumers' investment in funds has settled down, following the asset switching taking place over the last few months. Only time will tell if long term confidence has returned."
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