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Latest fund statistics from the Investment Management Association show investment on the up - funds under management in December standing at £410 billion. Or 3% up on November and 18% higher than December 2005. ISA funds under management of £51 billion, rose 2% from the previous month, and were 15% higher than the previous year.
Net ISA sales of £107 million in December were significantly higher than the £3.1 million outflow in November, but were down 16% from December 2005. The most popular ISA sector in December was UK All Companies, accounting for 26% of gross ISA sales.
Meanwhile, total net sales in December were £1.9 billion with equities accounting for inflows of £909 million. Net retail sales of £1.7 billion were almost three times higher than those seen in November, with £983 million invested in equities, followed by £432 million in bonds.
According to the IMA 2006 saw investors returning to investment funds at levels not seen since the record year of 2000. This, coupled with a year on year stock market increase of 11% in the UK alone, saw funds under management reach a record £410 billion. ISA funds under management also reached a record level after breaching the £50 billion mark in October.
Elsewhere, net sales of £5.3 billion saw institutional inflows reach the highest levels on record, beating the previous peak in 1998 by 36%. Net institutional sales in 2006 represented 26% of total net inflows into unit trusts and OEICs.
For the fifth consecutive year the most popular net institutional asset class was bonds, representing 43% of net inflows.
Net retail sales of £15 billion in 2006 were the highest in 6 years and were at the second highest level on record, just 13% behind the peak year of 2000. Year on year this was an increase of 80%.
The most popular asset class in 2006 was equities, which accounted for net retail inflows of £8.1 billion, followed by £3.6 billion in bonds.
The most popular net retail sector in 2006 was the Specialist sector with sales of £4.4 billion, almost double the second best selling sector, UK Equity Income, which had net retail sales of £2.3 billion. Property funds accounted for the strong growth of the Specialist sector in 2006 with net retail sales of £3.6 billion representing more than 80% of inflows into the Specialist sector.
Net ISA sales saw a recovery last year following their all time low in 2005, with 2006 sales topping £2.5 billion, the highest for three years. In net terms, the most popular ISA sector was the unclassified sector with sales of £527 million, closely followed by inflows of £517 million into the Cautious Managed sector.
15 July 2008 © Moneyextra.com
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