Net retail sales of overseas domiciled funds saw hefty outflows of -£679.1m compared with inflows of £399.4m in 2007.
However, net retail sales of overseas domiciled funds in December 2008 were £92.5m compared with £11.6m December 2007.
In December 2008, overseas domiciled Isa assets were £247m, a 15 per cent increase from November and 38 per cent down on december 2007.
Net retail sales of overseas investment fund Isas were £1.4m in December 2008 compared with £0.8m in December 2007. Net retail sales of overseas investment funds within Isas also dropped to £7.47m for 2008 compared with £26.7m last year.
The IMA is working towards integrating offshore funds into IMA sectors but says it has not committed itself to a timetable given the scale of task.
Hargreaves Lansdown investment manager Ben Yearsley says last year’s outflows are down to market conditions and offshore listings may benefit the sector.
He says: “There might be more acceptance of offshore funds as it does not help that they haven’t been featured in the performance tables. If the fund’s performance is listed, people start looking at them but it they are not, they tend to ignore.”