Property continued to top the retail best seller table in November for the second month running in what proved a bumper period for fund inflows, according to IMA figures.
Total net retail sales of £2.4bn during November ensured fund inflows broke through the £2bn barrier for the eighth month running. Year to date sales to the end of the month at £23.6bn were 10 times higher than £2.3bn for the same period in 2008.
The figures also show a sharp turnaround in the fortunes of property funds which attracted £417m in net retail sales over the month; the highest since £467m taken in March 2007.
Back in January 2009, property ranked 28th out of the 34 sectors, with net outflows of £35m while the top selling sector at the start of the year was £ Corporate Bonds (£1,036m). This position has now reversed with Corporate Bonds ranked 29th in November, with net outflows of £10m, after being the top selling sector for the first eight months of 2009.
After Property, the top selling sectors in terms of net retail sales were Global Emerging Markets, Unclassified and Absolute Return. Japan was the worst seller with outflows of around £41m.
Equities proved more popular than bonds for the third consecutive month, with net retail sales of £930m compared to £187m for bonds.
However, bonds are still ahead of equities year-to-date, with net sales totalling £9.6bn (41% of total net retail sales) compared to equities at £6.8bn (29%).
Meanwhile, total funds under management for November were up 38% on the same month in 2008 to £467.3bn, reflecting both record inflows and the recovery of stock markets.
November was also a record month for gross ISA sales which reached £987m; the highest ever monthly sales outside the ISA season. This is more than double the £449m recorded in November 2008.
Overseas funds under management totalled £24bn during the month but sales were disappointing with net outflows of £11.8m compared to net inflows of £109.6m for November 2008.
Richard Saunders, chief executive of the IMA, says: "November saw a continuation of record fund sales - with investors putting in ten times more money in 2009 than they did in the first eleven months of 2008. It is good to see investors once again taking advantage of the benefits of ISAs after several years of net outflows.
"The last few months have seen a resurgence of sales of Equity and Property funds. This is in sharp contrast to the beginning of the year when Bond funds were outselling other asset types and the Property sector was seeing outflows."
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