Overseas funds soar as onshore slumps
Net retail sales of overseasdomiciled funds increased by 49 per cent to £254.9m in July, up from £171m in June.
July’s figure is 69 per cent up on the monthly average of £151m for net retail sales in the 12 months to July. But the figure is 36 per cent down on £400m in July 2010.
In comparison, net retail sales for onshore funds fell to £936m in July, plunging by 57 per cent from the £2.2bn in June and 61 per cent down from £2.4bn in July 2010.
Total offshore funds under management now stand at £32.2bn, up from £31.6bn in June. The figure stood at £23.8bn in July 2010.
Investment Management Association director of markets Jane Lowe says: “It is unusual for the flows into overseas funds to show any significant trends.
“On this occasion, much of the flow relates to a move from asset-based funds into money market funds.”
Bestinvest senior investment analyst Adrian Lowcock says: “It helps that offshore funds are now being placed in the IMA sectors, which makes them more comparable to other funds.”