Investment fund sales hit
record high

Sales of investment funds hit a record high last year as consumers looked to a alternative home for their savings, according to new figures.

Net sales of UK-based unit trusts and OEICs (open-ended investment companies) hit £25.8 billion during 2009, the highest level since records began in 1992 and 45 per cent higher than the previous record in 2000, the Investment Management Association (IMA) said.

Some £2.2 billion was paid into the funds in December - the ninth month in a row in which the figure had hit the £2 billion mark - ending the year on a high.

Investors favoured bonds during the first half of the year, but equities experienced a resurgence during the second half of 2009.

Overall, £9.9 billion of new funds were invested in bonds during the year, while £7.3 billion went into equities, a sharp turnaround from 2008, when people withdrew £1.3 billion more from equities than they invested.

The surge in investments, combined with strong stock market growth during the year, also helped to push up the value of funds under management to record levels for a year end.

At the end of December, funds under management - including money held for institutional investors - totalled £480.8 billion, dwarfing 2008's total of £361.7 billion.

Copyright © Press Association 2010
All articles are copyright The Press Association 2010. News articles provided by The Press Association for Family Investments. Whilst every care it taken to ensure accuracy of editorial content, Family Investments takes no responsibility for any errors or omissions. The views expressed in these articles are not necessarily those of Family Investments.

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