Investors taking cautious stance
Cautious investors cut investments
Monday, 30 Jun 2008 13:12
UK funds under management fell 3.7 per cent in the last year, as investors become more cautious in the prevailing economic uncertainty.
Data from the Investment Management Association (IMA) show Uk funds under management hit £453.7 billion in May, compared to £471.6 billion a year ago.
Net retail sales fell to £653.3million, from £1.1 billion a year ago, but ISA sales rose £18.3 million to £198.3 million.
Sales are still below levels seen last year.
IMA chief executive Richard Saunders said: "May saw respectable levels of new retail investment, after the recovery in April.
"But sales are still well below the levels of 2007, and investors continue to remain cautious in their choice of asset class."
The UK All Companies sector remained most popular – taking 23.2 per cent of all funds under management and taking 16 per cent of all gross sales for the month.
However, the sector also saw the greatest outflows - hitting £374.8 million.
The Specialist sector saw the highest inflow of UK domiciled net retail sales at £212.7 million, of which £83.1 million was through commodity funds and £57.9 million was through property funds.