For immediate release: Monday 29 January 2007
Investment fund statistics December 2006
- Investment funds under management £410 billion (December 2005 £347 billion)
- Total net industry sales £1.9 billion (December 2005 £2 billion)
- Net retail sales £1.7 billion (December 2005 £1.6 billion)
- Net ISA sales £107 million (December 2005 £127 million)
- 2006 total net industry sales £21 billion (2005 £12 billion)
- 2006 net retail sales £15 billion (2005 £8 billion)
- 2006 net ISA sales £2.5 billion (2005 £1.8 billion)
Funds under management
Investment funds under management of £410 billion in December saw a 3% increase from November and were 18% higher than December 2005. ISA funds under management of £51 billion, rose 2% from the previous month, and were 15% higher than the previous year.
Net ISA sales of £107 million in December were significantly higher than the £3.1 million outflow in November, but were down 16% from December 2005. The most popular ISA sector in December was UK All Companies, accounting for 26% of gross ISA sales.
Net sales by asset class
Total net sales in December were £1.9 billion with equities accounting for inflows of £909 million. Net retail sales of £1.7 billion were almost three times higher than those seen in November, with £983 million invested in equities, followed by £432 million in bonds.
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2006 saw investors returning to investment funds at levels not seen since the record year of 2000. This coupled with a year on year stock market increase of 11% in the UK alone, saw funds under management of investment funds reach record highs of £410 billion. ISA funds under management also reached record levels after breaching the £50 billion mark in October.
Net sales of £5.3 billion saw institutional inflows reach the highest levels on record beating the previous peak in 1998 by 36%. Net institutional sales in 2006 represented 26% of total net inflows into unit trusts and OEICs. For the fifth consecutive year the most popular net institutional asset class was bonds, representing 43% of net inflows.
Net retail sales of £15 billion in 2006 were the highest in 6 years and were at the second highest level on record, just 13% behind the peak year of 2000. Year on year this was an increase of 80%.
The most popular asset class in 2006 was equities, which accounted for net retail inflows of £8.1 billion, followed by £3.6 billion in bonds.
The most popular net retail sector in 2006 was the Specialist sector with sales of £4.4 billion, almost double the second best selling sector, UK Equity Income, which had net retail sales of £2.3 billion. Property funds accounted for the strong growth of the Specialist sector in 2006 with net retail sales of £3.6 billion representing more than 80% of inflows into the Specialist sector.
Intermediaries continued to dominate the distribution of funds throughout 2006 with 79% of gross retail sales being intermediated. The proportion of gross retail sales through sales force/tied agents, however, fell to their lowest levels with the channel representing only 8% of gross retail business.
Net ISA sales saw a recovery last year following their all time low in 2005, with 2006 sales topping £2.5 billion, the highest for three years. In net terms, the most popular ISA sector was the unclassified sector with sales of £527 million, closely followed by inflows of £517 million into the Cautious Managed sector.
For the first time, fund supermarkets became the dominant distributor of ISAs representing 38% of gross ISA business in 2006, followed by 33% through sales force/tied agents.
Richard Saunders, Chief Executive of the IMA commented:
"2006 was a good year for the investment funds industry with funds under management breaching the £400 billion mark for the first time in December and net retail inflows the second highest ever. But perhaps the single most significant development was the confirmation that the face of retail distribution is seeing real change, with fund supermarkets now dominating ISA business .
"The industry enters the new year in good shape, and ready to play its part in building a retail savings industry for the 21st century."
1. Summary table
2. Funds under management by asset class
3. Unit trust/OEIC sales
4. Net sales by asset class
5. Gross retail sales - 10 year summary
6. Sector summary - current month
7. Retail business by sector and channel - current month
8. Summary of best and worst selling sectors
9. Funds under management - 13 month chart
10. Net retail sales - 13 month chart
11. Performance of average fund by IMA sector
2006 Annual Data
12. Funds under management split by retail and institutional business 1997-2006
13. Retail funds under management 1997-2006
14. Unit trust/OEIC net sales 1997-2006
15. Gross retail sales by distribution channel 2002-2006
16. Funds under management by asset type 2006
17. Net retail sales by asset type 2006
18. Quarterly fund supermarket net ISA sales 2003-2006
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For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898