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Isas buck trend as net retail sales rise again UK funds suffer their biggest fall since 1990

Net retail sales of investment funds increased to almost £500m last month but Isa sales slowed to less than £225m, according to the Investment Management Association.

The IMA&#39s monthly figures show that, while net retail sales rose to £493m in November from £453m in October, Isa sales slipped to £224m from £238m.

Investment funds under management last month were £202.9bn, up from £197.1bn in October but down from November 2001, when they stood at £236.3bn.

The number of funds in the market also fell to 1,945 from 1,982 as investment houses closed or consolidated funds.

Intermediaries accounted for 64 per cent of gross retail sales, with salesforces/tied agents accounting for 21 per cent. Only 11 per cent were direct sales.

However, in the corporate bond sector, which was the most popular in November along with UK all companies, salesforces/tied agents were responsible for 58 per cent of retail sales.

The worst-selling funds were in the Europe (exc UK) and UK equity & bond income sectors.

Head of communications Clare Arber says: “Net retail inflows once again reached half a billion pounds – a level, September excepted, that has been maintained since spring.

“Corporate bond funds remain popular with private investors and contributed the lion&#39s share of net retail investment for the seventh month running.”

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