Fund sales hit 18-month low as euro fears plague investors

Net retail fund sales fell below £1bn for the first time in 18 months in May as the euro area crisis hit investor sentiment, IMA data shows.

Sales of £948m last month were 56% lower than April and represent the lowest monthly total since November 2008. Gross retail sales were 12% down month-on-month at £7.8bn, but retail repurchases - where investors sell their investments - were the second highest on record at £6.8bn. Funds under management stood at £492.6bn at the end of May, 3.5% down on April's record £510.6bn, and the third highest level on record. Meanwhile, all retail sales channels saw a fall in gross sales in May. Gross retail sales for ‘other intermediaries' - primarily wealth managers and stockbrokers - ...