Sales of investment funds slow

29 January 2008 / by None
The final months of 2007 saw investors "re-evaluate" their portfolios as the credit crunch continued to reverberate through the industry.

Investments into UK-based unit trusts and open-ended investment companies were down 11 per cent in December to £4.69 billion, according to an industry association.

Data from the Investment Management Association (IMA) shows that, while the majority of the year saw good market performance similar to the previous year, the closing months herald an uncertain coming year, the Press Association reports.

Richard Saunders, chief executive of the IMA, said: "As the impact of the credit crunch began to be felt, investors significantly re-evaluated their portfolios and the industry experienced its first overall retail outflows in 15 years."

However, net sales to individuals continued to be strong in 2007 totalling £15.3 billion, the report continues.

The IMA has announced that investment funds under management of £468 billion in December saw a one per cent increase from November and a 14 per cent increase from December 2006.

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