ISA sales fall away as markets slide

by Gill Montia

Story link: ISA sales fall away as markets slide

The Investment Management Association (IMA) has published statistics for June showing that net sales of retail funds and Individual Savings Accounts (ISAs) fell to their lowest level since the beginning of the year.

Last month, net retail fund sales stood at £139.5 million, down from £652.6 million May and £747.8 million in June 2007.

Net sales of UK domiciled investment fund Instant Savings Accounts (ISAs) saw outflows of £209.9 million in June 2008, compared to outflows of £198.3 million in May and outflows of £174.7 million in June 2007.

The fall is linked to stock market movements, with the FTSE 100 having fallen sharply last month.

The data also reveals that Absolute Return funds, which are designed to offer protection when markets are volatile, had the most appeal to investors, with June inflows of £214 million.

Meanwhile, the sector with the biggest net retail outflows in June was the UK All Companies sector at £164.7 million.

Funds under management of UK domiciled investment funds decreased 6% on May, to £425.2 billion and were 9% down on June 2007.

Finally, the most popular distribution channel for gross retail sales of UK domiciled funds in June was the intermediary channel, at 85%.