The extent of the credit crunch has been starkly revealed today after IMA figures showed January retail sales of UK funds dropped by almost £1.5bn from the same month last year.
The statistics illustrate there were -£550.5m net retail sales in January, down from £912m in January 2007.
Net retail sales for overseas domiciled funds also saw a steep drop – from £16.7m last January to -£296.4m last month.
There was £550m worth of net retail outflows, with equities witnessing the largest outpouring of £867m, including £77m outflows from property funds.
Funds under management of UK domiciled investment funds were £433.2bn in January, a fall of 7% from December and 3% lower than January 2007.
The Global Growth sector was the most popular UK domiciled net retail sector with inflows of £154m. The sector with the biggest outflows in January was UK All Companies at £439m.
UK domiciled ISA funds under management of £50.2bn were down 8% from the previous month and 2% lower than the previous year.
A similar decline also occurred in the ISA category, with ISA sales sliding almost £100m. A total of £30.9m was sold through ISAs in January 2007 but that figure has dropped to -£68.4m.
Richard Saunders, chief executive of the IMA, says: “January saw a continuation of the outflows experienced in the last two months of 2007.
“While it is traditionally a slower month in the run-up to the ISA season - which many are predicting will be a quiet one - broader market conditions have exacerbated this.
“January's outflows were concentrated in equity funds, with property fund outflows down to about half the levels of November and December.”
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