IMA: Net retail sales fall in April

Net retail sales of funds dropped by £100m year on year in April, the Investment Management Association (IMA) has revealed.

The latest figures from the trade body showed a drop from £2.5bn in April 2010 to £2.4bn in April 2011.

Despite the fall, sales were still the highest since last April, and above the monthly average of £1.8bn.

Equity funds were the most sought after product, with £1.1bn of net retail sales, the second time in 12 months sales have topped £1bn.

Bond sales came in at £516m, with £465m of this taken by £ Strategic Bond funds, making it the most popular sector for the fourth month in a row.

Richard Saunders, chief executive of the IMA, said ISA sales - particular those made via a platform - had driven total sales.

"April's statistics reflect a strong 2011 ISA season, with ISAs accounting for about half the £2.4bn investors added to their holdings," he said.

"Fund platforms also reported their highest gross ISA sales on record in April, at £1.3bn."

Assets have also climbed sharply year on year, with total funds under management across all sectors rising from £517bn last April to £594.6bn.