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Press Release

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For immediate release: Tuesday 1 December 2009

ISA SALES THE HIGHEST FOR ANY OCTOBER

Investment fund statistics - October 2009

The Investment Management Association (IMA) today releases its figures for the fund management industry for October 2009.

Key findings:

  • Gross ISA sales were the highest ever for any October - and the highest monthly figure outside the ISA season since June 2000
  • Total net retail sales reached £21.1 billion year-to-date - ahead of the highest ever full year for sales
  • Property became the best selling net retail sector for the first time in over two years

Richard Saunders, Chief Executive of the IMA, commented:     

"October was the first month in which the over 50s could use their ISA allowance - and it proved to be the highest ever October for gross ISA sales.  ISA sales are clearly heading for their best year since 2002."

Summary

UK DOMICILED    

 OVERSEAS DOMICILED  

Funds under management

£459.5 billion
(£339.5 billion October 2008)

£23.5 billion
(£15.3 billion October 2008)

Net retail sales

 £2.4 billion
(-£510.1 million October 2008)

£262.2 million
(-£203.8 million October 2008)

Net ISA sales

£301.1 million
(-£172.9 million October 2008)

 £1.2million
(-£1.3 million October 2008)

 

UK DOMICILED FUNDS

ISAs

Gross ISA sales of £965 million were the highest October recorded since ISAs were launched in April 1999.  It is also the highest month for ISA sales outside the ISA season (March and April) since June 2000. October was the first month in which the over 50s could use their increased ISA allowance of £10,200. 

Net ISA sales in October totalled £301.1 million - almost double September's (£162.3 million). This is the eighth consecutive month for positive net sales.  The position is in contrast to a year ago, when October 2008 saw a net outflow of £172.9 million. (Table 3)

The most popular fund choice for ISA investors in October in terms of gross retail sales was the IMA Cautious Managed Sector (£95 million).  (Table 8

 

Net retail sales for October were £2.4 billion. Strong inflows have been recorded for retail sales each month this year, with October being the seventh month in a row in which net retail sales topped £2 billion.  This is in contrast with last year, when October 2008 saw an outflow of £510.1 million.

Retail Sales

Total net retail sales year-to-date reached £21.1 billion - ahead of the total achieved in the whole of 2000, which was the highest year for retail sales ever recorded.  (By the end of October 2000, net retail sales stood at £15.7 billion). (See Table 3, and Chart 2)

Funds under management

Funds under management are at a similar level to the previous month, down by 1% in October to £459.5 million, from £463.7 million the previous month.  (See Table 1, Table 2 and Chart 1)

Asset classes

Equity funds proved the most popular asset class,with net retail sales of £665 million, followed by 'Other', which was mostly driven by the Absolute Return and Unclassified sectors. Third came Bond funds which took in £496 million.  This is the second consecutive month in which Equities have beaten Bonds.  (Table 4)

Institutional sales showed a different pattern.  Total net institutional sales saw an outflow of £436 million in October, with Equity funds seeing the biggest outflow of £360 million.

IMA Sectors

The IMA Property sector was the highest selling sector, accounting for £367.6 million of net retail sales, the highest since May 2007. Property funds have seen positive net retail sales for seven consecutive months. In November and December last year Property was the lowest selling sector.  (Table 9)

The IMA £ Sterling Corporate Bond sector saw an outflow of £11.8 million. This is in sharp contrast of pervious months where it stood as the best selling sector for ten consecutive months upto August.  (Table 8

OVERSEAS FUNDS

Overseas funds under management totalled £23.5 billion in October.  (This is 6% lower than in September.)  Total net retail sales in October were £262.2 million - in September net retail sales stood at £151.3 million.  (Table 6)

 -Ends-

Table 1. Summary table 
Table 2. UK domiciled funds under management by asset class
Table 3. UK domiciled unit trust/OEIC sales
Table 4. UK domiciled net sales by asset class
Table 5. UK domiciled gross retail sales - 10 year summary
Table 6. Overseas domiciled FUM and sales
Table 7. Sector summary - current month
Table 8. Retail business by sector and channel - current month
Table 9. UK domiciled summary of best and worst selling sectors
Table 10. Performance of average UK domiciled fund by IMA sector
Chart 1. UK domiciled funds under management - 13 month chart
Chart 2. UK domiciled net retail sales - 13 month chart

For further information, please contact:
Noreen Shah, Press Officer, IMA, 020 7831 0898
Ginny Broad, Head of Communications, IMA, 020 7831 0898 or 07834 089332

Note: Gross retail sales are new sales or switches recorded, repurchases are when investors sell their investments.  Net retail sales comprise total sales minus repurchases.

The IMA's press releases and statistical information can all be found at /.

About the Investment Management Association
The IMA is the trade body for the UK's £3 trillion asset management industry.  The money its members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.  Its role is to represent the industry and promote high standards.

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