Investment funds enjoy best sales in two years

30th August 2013


Thousands of Britons ploughed more than £2.2bn into investment funds during July, the biggest amount of cash committed in more than two years as investor confidence rises writes Philip Scott.

According to the latest numbers from fund group trade body, the Investment Management Association, this was the highest level since April 2011 and as a result a record level of cash is now invested in funds at £744m.

Funds which invest in shares enjoyed sales of £1.4bn in July, the highest since December 2010. Mixed asset portfolios, which invest across a range of different assets including shares, bonds and property, were the second best-selling category with net retail sales of £397m while property funds notched £140m in sales, their best month in three years.

Adrian Lowcock, senior investment manager at Hargreaves Lansdown, commenting on the IMA numbers says: “The sell-off in May proved to be short-lived and stock markets rebounded in July.  We saw investor confidence returning strongly in July, rising 11.6 per cent to its highest level since May 2006.

“There was a lot of positive news coming out of the UK and US.   There has been significant change in outlook in the domestic economy.  At the start of the year the UK was on the brink of entering an unprecedented triple dip recession.  Instead revised statistics showed the UK economy had avoided a double dip recession and there are very early signs of a recovery.

“The US economy is showing stronger signs of improvement with the Fed reporting annualised growth of 1.7 per cent in the second three months of the year.  The economy is improving; house prices are rising and employment is stabilising. Consumers are feeling better and starting to spend more confidently.”

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