Funds under management 'increasingly popular' for private wealth management

Individuals with private wealth are turning towards managed funds, as sales averaged over £2 billion a month in May.

Wealth management advisers may also be favouring cautious managed funds; with retail sales over £400 million, it was the highest performing sector in April, reports the Investment Management Association (IMA).

Strategic bonds were the second most popular category, having dropped slightly from the previous two months.

Offshore banking business also showed strong growth, with funds under management totalling £25 billion in April, an increase of £7 billion on the year before.

Richard Saunders, chief executive of the IMA, commented: ’April had the highest net sales so far this year - and funds under management once again reached record figures.’

Individual Savings Account sales for April were the highest since 2001, showing private wealth investment across the board is recovering in the wake of the recession.

The IMA is the trade association of the UK asset management industry, providing statistics on the financial markets and representation for buyers and sellers.ADNFCR-2318-ID-19823917-ADNFCR