Continuing low interest rates on offer for cash unit-linked products saw net flows into cash by retail investors fall by €255 million in 2006. In 2005, E106 million was invested in such products. This is according to the Irish Association of Investment Managers' (IAIM) tenth Annual Survey of Investment Trends in the Irish retail funds market.
Overall, the value of unitised funds rose by E4 billion or 24 per cent in 2006, with additional investment of E659 million in managed funds. These type of funds continue to be the largest unitised fund category, with total assets of E12.7 billion. However, the largest net inflows were in property, with over E1 billion invested in unitised property products during 2006, an increase of 66 per cent on 2005.
Total assets under management by IAIM members on behalf of domestic and international clients amounted to E260 billion at the end of December 2006, with an additional E2.1 billion invested in retail products during 2006. Overall, IAIM members managed E29.4 billion of assets in retail products, an increase of E4.4 billion or 18 per cent on the December 2005 level.
The impact of SSIA maturities (which commenced in May 2006) was a feature of the 2nd half of the year. Overall net outflows from SSIA's for the whole year amounted to E410 million.
Approximately 50 per cent of all SSIAs mature in April 2007. The evidence during the period May to December 2006 and in the first quarter of 2007 is that one third to a half of investors roll-over their SSIA balances and are continuing to save albeit at slightly lower monthly levels in some cases. |
