Investment funds cash falls
The amount of money people paid into investment funds fell during June.
Individuals invested a total of £5.33 billion in unit trusts and OEICs (open-ended investment companies) that are registered in the UK during the month, down from £5.71 billion the previous month, according to the Investment Management Association.
Once people cashing in their investments or moving them elsewhere was taken into account, net sales rose by only £766.7 million, well down on the previous month’s £1.14 billion and a figure of £1.1 billion reached in June last year.
The group said there was no obvious reason for the drop, adding that not too much could be read into one month’s figures.
On a quarterly basis sale of investment funds continued to remain buoyant, with the amount invested rising by £3.68 billion during the three months to the end of June, up from £3.03 billion during the first quarter of the year.
ISA sales also fell during June, with net sales of the tax-free accounts falling to £108.8 million, from £135.5 million in May and nearly half the £190.7 million seen in June last year.
But on a quarterly basis sales remained strong, with a total of £1.09 billion invested in the products during the three months to the end of June, well up on the £652.7 million reached during the previous three months.
Last week the Government paved the way for a range of reforms to make ISAs simpler and easier to understand, including abolishing the current distinction between mini and maxi ISAs.
Richard Saunders, chief executive of the IMA, said: “June was a slightly slower month for retail investment, but sales in the second quarter of 2007 overall held up well.
“Investment in ISAs continued to be at a modest level, which is puzzling given the buoyancy of industry sales in the last two years. It is to be hoped that the recently published reforms to ISAs from next April will help to revitalise the product.”