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Investment fund sales hit record highs in August

29 September 2009 / by Rebecca Sargent

Investment fund net retail sales hit £2.2billion in August this year - the highest level ever recorded for August, according to the Investment Management Association (IMA).

And, as the over 50s ISA allowance increase approaches, the IMA reported positive net sales of ISAs for the sixth consecutive month. ISA sales totalled £151million in August, a huge increase on the minus £299million seen in August 2008.

Commenting, Richard Saunders, chief executive of the IMA said: "Investors continued to add to their holdings in August, as they have been doing all year so far.

"It is particularly encouraging to see investors making use of ISAs again. After five years of withdrawals from ISAs, we have now had six months of net inflows."

The Cautious Managed Sector was top of the buys for ISA sales, while the Corporate Bond Sector remained the most popular investment fund choice overall for the tenth consecutive month.

In fact, bond funds accounted for 34 per cent of total net retail sales of funds in August, although equity funds were not far behind, accounting for 32 per cent of the total, as investors regained confidence in the stock market.

Other sectors to make it into the IMA top five include Absolute Returns – UK, Strategic Bonds, North America and Property.

Meanwhile, share dealing has also seen a rally, as a five fold increase in trading was seen at Interactive Investor in August. Commenting, Rebecca O'Keeffe, head of investment at Interactive Investor said:

"Online trading is now simpler than ever and investors have discovered an increased appetite for share dealing."

ISAs are also proving popular in the share dealing world, Ms O'Keeffe adds: "Investors are also rightly making use of the tax advantages of ISAs. If you are going to trade and invest then doing so within the stocks and shares ISA should be your first port of call."

Compare investment funds or click to learn more about share dealing ISAs.

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 Product NameISA OptionIncome YieldMore Info
Henderson Strategic Bondyes5.7%More Info >
Income Paid Quarterly. Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. See latest fund factsheet for details.
Newton Asian Incomeyes5.43%More Info >
Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Newton Higher Incomeyes5.4%More Info >
Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Invesco Perpetual Distributionyes4.7%More Info >
Income Paid Monthly. Invesco Perpetual Distribution offers a balance between both income and capital growth through investment in UK based equities and fixed interest securities. See latest fund factsheet for details.
Invesco Perpetual Monthly Income Plusyes4.46%More Info >
Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details.
Woodford Equity Income Fundyes3.50%More Info >
Our selected partner for investing in Neil Woodford's Equity Income fund is Barclays Stockbrokers, via their INVESTMENT ISA for new ISAs and ISA transfers, or their MARKETMASTER® ACCOUNT for non-ISA investments. Income Paid Quarterly.The fund’s investment objective is to provide investors with long-term appreciation through investing in stocks primarily listed on the UK stock exchanges. Up to 20% may be invested in international companies. The income objective is 10% higher than the FTSE All Share Index yield with an anticipated annual yield of 4.0%.
Newton Global Higher Income yes4.7%More Info >
Income Paid Quarterly. The objective of the Sub-Fund is to achieve increasing annual distributions together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details.
Jupiter Merlin Income Portfolioyes3.10%More Info >
Income Paid Quarterly. To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. See latest fund factsheet for details.
M&G Global Dividendyes3.27%More Info >
Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details.
Kames Strategic Bond yes2.95%More Info >
The primary investment objective is to maximise total return (income plus capital ) by investing in global debt instruments,denominated in any currency, ranging from AAA Government Bonds through to high yield and emerging market corporate bonds. At least 50% of the fund will be invested in sterling and other currency denominated bonds hedged back to sterling. See latest fund factsheet for details.
M&G Optimal Incomeyes2.44%More Info >
Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details.
*Current Income Yields are Gross, Variable and Not Guaranteed
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.

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