Funds fighting back after slump

12 April 2012

NET sales of funds tumbled 45% year-on-year in November but recorded a strong increase over October, industry figures showed today.

Net sales fell to £591.3m from £1bn in November last year, according to figures released by the Association of Unit Trusts and Investment Funds (AUTIF). But compared with October, sales rose 52%, up from £247m.

The figures come towards the end of what has been a miserable year for Britain's retail fund industry. Investors have been spooked by falling returns, sliding stock markets and the impact of the 11 September attacks on the United States.

But the latest figures may suggest a revival of investor confidence, AUTIF said. 'Although it's too early to say with certainty that investors have regained confidence in stockmarket investment, there does appear to be a growing number of savers who believe that now is the good time to invest,' said Clare Arber, head of AUTIF communications.

Despite signs of returning appetite for stocks, however, investors continued to prefer bond funds, she said. Best selling funds in November were in British corporate bonds and British other bonds.

Total funds under management rose to £234bn in November from £223bn in October.

Net sales of tax-exempt Isas dropped in November from a year ago, falling to £267.8m from £578.5m in November 2000. They also fell on the month, down from £286m in October.

Net institutional sales did better than retail over the year, with November's figure of £766m up from £529m in November 2000, and up from £529m in October.

Total repurchases of retail and institutional sales declined in November compared with the previous month, at £2.425bn, down from £3.495bn in October, and also down from £2.821bn a year ago.

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