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Press Release

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Tuesday 2 February 2010

£25 BILLION - 2009 A RECORD YEAR FOR FUND SALES

Investment fund statistics - December 2009 and 2009 summary

The Investment Management Association today publishes the figures for the fund management industry for December and the full year of 2009.

Key findings:

  • Fund sales highest on record - £25.8 billion net retail sales, 45% above previous best year
  • The highest year end for funds under management - £480.8 billion 
  • ISA sales of £2.8 billion - the best year since 2001
  • £ Corporate Bond the highest selling IMA Sector for 2009
  • Absolute Return the best selling IMA Sector for December, just beating Property

Richard Saunders, Chief Executive of the IMA, commented:     

"2009 has seen investors adding to their savings at record rates.  This trend can be traced back to the autumn of 2008 in the immediate aftermath of the Lehman crash and the ensuing market falls.  Investors have prudently chosen wide diversification both across asset classes and geographically - in marked contrast to the previous record year of 2000.  And it is good to see people once more investing via ISAs, after five years in which ISAs saw higher levels of withdrawals than investments."

 

SUMMARY
UK DOMICILED

FUNDS UNDER MANAGEMENT

RETAIL SALES
(NET)

ISA SALES
(NET)

2009

£480.8 billion

£25.8 billion

  £2.8 billion

2008

£361.7 billion

£3.8 billion

-£1.6 billion

December 2009

£480.8 billion

£2.2 billion

£210 million

December 2008

£361.7 billion

£1.5 billion

£52 million

 


 

 

 


UK
DOMICILED FUNDS

SALES

2009 is the highest year on record for fund sales, with £25.8 billion in net retail sales - 45% more than 2000 (£17.7 billion), the previous best year - and more than six times the level achieved in 2008 (£3.8 billion).

December 2009 saw net retail sales of £2.2 billion - the ninth consecutive month in which sales topped £2 billion.  This was well ahead of the £1.5 billion achieved in December 2008.

(See Table 3, and Chart 2)

FUNDS UNDER MANAGEMENT

2009 is highest year end to date for funds under management - £480.8 billion, exceeding the previous highest year end, 2007 (£467.0 billion), and a third (33%) higher than 2008 (£361.7 billion).  (Only once before do IMA figures show funds under management higher, when they reached £481.2 billion in October 2007.)

(See Table 2)

ASSET CLASSES

Bond sales dominated the first part of the year but Equities experienced a resurgence in the second half.  Bonds finished the year 36% ahead of Equities, with net retail sales of £9.9 billion, compared to £7.3 billion for Equities for the year as a whole. 

ASSET SALES
(net retail)

Equities

Bonds

H1 2009

£2.8 billion

£6.8 billion

H2 2009

£4.5 billion

£3.1 billion

Total

£7.3 billion

£9.9 billion

 

 

 


In 2008, Bonds were also the most popular asset class with net retail sales of £2.8 billion.  By contrast Equities, which were the least popular asset, experienced an overall outflow of funds in 2008 (£1.3 billion).


SALES BY ASSET - 2009 compared to 2008

2009 RANK

ASSET
CLASS

2009 SALES
(net retail)

2008 RANK

2008 SALES (net retail)

1st

Bonds

£9.87 billion

1st

£2.85 billion

2nd

Equities

£7.37 billion

6th

-£1.25 billion

3rd

Other

£4.97 billion

2nd

£1.47 billion

4th

Balanced

£2.07 billion

3rd

£0.98 billion

5th

Property

£1.67 billion

5th

-£0.47 billion

6th

Money Market

-£0.03 billion

4th

£0.24 billion

 

 

 

 

 

 


Absolute Return comprised over half (52%) of the 'Other' asset class, with net sales of £2.5 billion.

Equities still comprise the majority (61%) of funds under management (£293.1 billion) - although this has fallen from 83% in the ten years since the end of 1999.

Bonds now comprise 20% of funds under management, a figure that has increased markedly from 8% ten years ago. 

Property comprises 2% of funds under management, a ten fold increase on 1999, when the figure was only 0.2%. 

(See Table 4)

IMA SECTORS

Absolute Return was the top selling IMA Sector in December 2009, with net retail sales of £511.0 million, just beating Property with £510.9 million, which had been the top sector for the two previous months.

£ Corporate Bond was the most popular IMA Sector during 2009 as a whole, topping the sales chart for eight months of the year (January to August), with total net retail sales of £6.0 billion for the year.  Nearly £1 in every £4 invested in funds during 2009 (23%) went into a fund in the IMA £ Corporate Bond Sector.

Absolute Return was the second most popular IMA Sector for the whole of 2009, and was the most popular in both September and December. Total net retail sales for the year were £2.5 billion, accounting for around £1 in every £10 invested in funds in the year (10%).

Property came 4th overall for the year and accounted for £1 in every £16 invested in funds in 2009 (£1.6 billion in net retail sales).  It came 1st in both October and November 2009, and was only narrowly beaten to the top slot by Absolute Return in December.  This is a dramatic reversal of the position in 2008, when Property came 33rd, with a net outflow of funds of £466 million.


SECTOR SALES - 2009 compared to 2008

2009 RANK

IMA SECTOR

2009 SALES (net retail)

2008 RANK

2008 SALES (net retail)

1st

£ Corporate Bond

£5.97 billion

1st

£1.61 billion

2nd

Absolute Return

£2.55 billion

2nd

£1.48 billion

3rd

£ Strategic Bond

£1.96 billion

7th

£0.54 billion

4th

Property

£1.64 billion

33rd

-£0.47 billion

5th

Protected

£1.47 billion

9th

£0.41 billion

 

 

 

 

 



(See Table 8 and Table 9

ISAs

ISA sales were the best year since 2001 - with net retail sales totalling £2.8 billion in 2009 (£2.4 billion in 2001).  This is in contrast to the previous five years which all saw net outflows from ISAs, the highest of which was in 2008, which saw net outflows of £1.6 billion.

ISA funds under management reached £93.8 billion in December, the fifth highest month ever recorded. 2009 finished 27% ahead of 2008 (£73.6 billion).

The most popular IMA Sector chosen for ISAs in 2009 was UK All Companies (£964 million gross retail sales), followed by Cautious Managed (£910 million), Unclassified (£805 million), £ Corporate Bond (£518 milion) and Protected (£480 million).

(See Table 2, Table 3 and Table 8

INSTITUTIONAL FUNDS

2009 was the best year for institutional sales since 2006, with net sales of £3.8 billion (£5.5 billion in 2006).

In contrast to the retail market, Equities were the biggest selling asset class (£1.6 billion for Equities, £1.3 billion for Other, £0.9 billion achieved by Bonds). 

December 2009 saw net institutional sales of £330 million.  The leading asset class was Other (£340 million), driven by Absolute Return, followed by Equities (£270 million).  Bonds saw a net outflow of £349 million. 

(See Table 4)

OVERSEAS DOMICILED FUNDS

Overseas domiciled funds sold to UK investors in 2009 totalled £1.6 billion net retail, in contrast to the outflow of £663 million in 2008. 

OVERSEAS DOMICILED

FUNDS UNDER MANAGEMENT

RETAIL SALES
(NET)

ISA SALES
(NET)

2009

£24.9 billion

£1,568 million

  £12.7 million

2008*

£16.0 billion

-£663 million

£7.4 million

December 2009

£24.9 billion

£272 million

£1.9 million

December 2008*

£16.0 billion

£110 millon

£1.4 million

      

 

 


* Excludes figures for groups that did not start reporting figures to IMA until 2009.

(See Table 6)

DISTRIBUTION

Intermediaries accounted for 87% of all gross retail sales in 2009, slightly higher than the figure at the end of 2008, and much higher than ten years ago, when the figure stood at 49%.  (Intermediaries include IFAs, wealth managers and platforms.)  The share of sales by direct sales forces and tied agents stands at 6%, well down from the 27% ten years ago.  Direct business has also declined, standing at 4% in 2009, compared to 18% in 1999. 

Direct sales forces and tied agents accounted for a much higher proportion of ISA sales (31%, £3.1 billion) than they do for non ISA sales.  The largest amount of ISA sales went through platforms.

(See Table 5 and Table 8)

-ENDS-

Notes for Editors

In addition to the usual monthly tables, there is a PowerPoint presentation which includes further graphs and analysis, which can be viewed here

For more details on the figures given in the press release, please see the tables on the links below.

All tables

1   Summary table
2   Funds under management - by asset class
3   Sales - gross, net and ISAs
4   Sales - net sales by asset class 
5   Sales - by distribution channel 
6   Offshore funds - funds under management and sales
7   Sectors - funds under management and sales 
8   Sectors - sales by distribution channel 
9   Sectors - best and worst selling
10  Sectors - investment performance

Graphs

Funds under management - by month
Sales - net retail sales by year

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 www.investmentuk.org

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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