Investment funds flourish despite credit squeeze

by Gill Montia

Story link: Investment funds flourish despite credit squeeze

The Investment Management Association (IMA) has published its latest figures, which indicate that the credit squeeze has had little impact on the amount of money coming into UK investment funds.

During September, cash under management of UK domiciled investment funds increased 2.5% on August, to £468.3 billion. The figure is 21% higher than in September 2006.

UK domiciled ISA funds under management rose 1.9% on August, to £54.6 billion, showing a 10% increase on September 2006.

Net sales of UK domiciled investment fund ISAs totalled £43.2 million in September, a 13% increase on August, but down 14% from September 2006.

During September, 27% of gross ISA sales were invested in the UK All Companies sector and the most popular ISA sector was Cautious Managed.

Net retail sales amounted to £888 million in September and of this £613 million was invested in equities and £130 million in balanced funds.

The Specialist sector saw the largest net retail inflow during September (£267 million); the largest outflow occurred in the UK Corporate Bond sector (£119 million).

September saw overseas funds under management increase 6.8% on August, to £17.3 billion and overseas ISA assets increase 16%, to £332.1 million.