The UK saw the highest August net retail sales on record for the fund management industry, according to figures from the Investment Management Association (IMA). Net ISA sales have now been positive for the sixth month in a row with sterling corporate bond as the best selling sector for the tenth consecutive month

For UK domiciled funds net retail sales for August totalled £2.2 billion.

Strong inflows have been recorded for each month this year with total net retail sales year-to-date at £15.9 billion.

Gross retail sales have been higher and repurchases lower in the last six months, compared with the preceding six months.

ISA sales totalled £151 million, the sixth consecutive month for positive net sales. ISA sales year-to-date total £1.8 billion net.

This contrasts with the last five years when net sales of ISAs year-to-date were negative or negligible, reflecting the fact that higher levels of funds were being redeemed than the amount of new money coming in.

The most popular fund choice for ISA investors in August was the IMA Cautious Managed Sector (with £67 million gross retail sales, compared with July when it was £87 million.)

Funds under management reached £439 billion in August, the highest they have been for over a year. In May 2008 they peaked at £454.0 billion. August is 6% up on the total of £412.5 billion in July.

Bond funds continued to be the most popular asset class in terms of net retail sales. They were £742 million in August, comprising 34% of total net retail sales.

Equity funds were not far behind. They started the year with negative net retail sales (-£229 million in January and -£28 million in February) but over the last six months have seen stronger figures.

In August net retail sales were £696 million, 32% of the total.

Property, which has been showing positive net retail sales since April, totalled £129 million. This represents just 6% of total net retail sales.

Net institutional sales of equity funds were higher than those for bond funds (£318 million compared to £153 million.)

Investment fund statistics - August 2009

Source: Investment Management Association.

* Net retail sales show the total once withdrawals are accounted for ** Gross sales reflect the choices made for new or switched investments. Source: Investment Management Association.