According to figures from the UK’s Investment Management Association, net sales of offshore funds (recognised by the FSA and with UK distribution status) over the month were only £33m, down from £205m in April and nearly £100m down on sales in May 2009 of £131m. Total assets under management for overseas domiciled funds as a whole were £23.3bn.
This trend was repeated across UK domiciled funds also, with total net retail sales for the month coming in at £948m – the first time it has been below £1bn since November 2008 and 56% below the £2.172bn net sales achieved in April. Sales in May 2009 were also significantly higher than this year at £2.842bn. However, funds under management proved resilient holding up at £492bn, down only 3.5% on the £510bn recorded in April.
The IMA Absolute Return UK sector is again proving popular with investors as they seek steady returns in a tumultuous environment. The sector received net sales of £181m over the month making it one of the most popular sectors since its introduction in April 2008, according to the IMA. Meanwhile, Global Growth was the second highest selling sector, while another equity sector, North America, was also in the top five best selling sectors – there were no equity sectors in the previous month.
