Overseas domiciled funds under management grew to £18.2bn from £16.4bn and up from £16.6bn for the same per-iod in 2007. Overseas Isa assets fell by £1m to £303m and are down from £332m in July 2007. Net retail sales of overseas domiciled funds saw outflows of £91.3 m compared with £183.2m. Net retail sales of overseas domiciled investment fund Isas saw outflows of £2.3m compared with £1.9m.
IFA Premier Wealth Management managing director Adrian Shandley says: “With offshore funds, it is a lot easier to invest in dollar-denominated funds. There has been a bit of a gain on the dollar so they would be the last ones to be sold and there is an attraction to retain offshore funds.
“Changes in capital gains tax also mean that offshore funds are also becoming more attractive. The drop in overseas Isas is due to the fact that they are generally exposed to very small emotionally led investors who tend to panic a lot quicker than institutions when times are hard. Some of the middle-ground investors will be advised to avoid Isas unless they are spec- ifically seeking income from corporate bonds.”