Fund sales boom as markets rise
UK investment fund sales enjoyed a strong April, with
private banking services customers piling back into the market.
Overall ISA inflows hit £671 million for the month, well up on April 2008’s £466 million according to the Investment Management Association (IMA).
Stock markets have been rising since March, with the FTSE 100 coming off a low of 3,500 to reach 4,400.
The IMA data show that funds’ collective financial position has benefitted from this trend, with assets under management rising eight per cent to hit £375 billion at the end of last month.
Inflows to bond funds again proved impressive, accounting for roughly half of total net retail sales.
Increasing rates of company defaults in the recession has led to higher yields on corporate debt - tempting investors not averse to risk.
Richard Saunders, chief executive of the IMA, said: ’Retail sales continued the strong showing of 2009 so far with inflows to bond funds in April exceeding £1 billion for the fifth consecutive month.
’The figures also confirm that April saw the highest ISA sales in three years.’
