The Investment Management Association has reported net retail fund sales of £1.9billion.
"The year has started very strongly, with sales figures the highest January and February on record," said Jane Lowe, Director of Markets at the IMA.
"Funds under management are the highest on record, beating the previous peak in October 2007."
February 2010 saw net retails sales of £1.9billion, which is the highest ever achieved by any February on record, and an increase of nearly 60% per cent on February 2009. Funds under management reached £487.7billion at the end of February which is an all time high -£13.1billion (three per cent) up on January 2010 and 42 per cent up on February 2009's figure of £341.1billion.
According to the IMA, the increases reflect both the very high levels of sales - £1.9 billion total net sales in the previous month and £30.0 billion over the previous year - and rises in the market -the FTSE 100 closed at 5354.5 at the end of February 2010, 40 per cent up on the year before.
The top selling fund sector in February was the strategic bond, with retail sales of £278million.
Strategic bonds, says the IMA, offer fund managers more flexibility to change the balance between different types of bonds which makes the funds able to respond to changes in the market and therefore not surprising they have been such a popular choice over recent months, as Ms Lowe explains:
"Strategic bonds accounted for the majority of net retail sales in the bond sectors, which otherwise slipped in popularity against the equity and other asset categories, "she said.
"Investors may find the additional flexibility offered by these funds attractive in times of uncertainty or change."
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