Wednesday 10 November 2010
2010 SALES OF FUNDS OF FUNDS THE HIGHEST ON RECORD – IMA FIGURES SHOW
Quarterly fund statistics for Funds of Funds, Tracker and Ethical data - Quarter 3 2010
The Investment Management Association (IMA) today publishes its quarterly figures for Funds of Funds, Tracker and Ethical funds for Quarter 3 2010.
• Funds of Funds – year to date net retail sales the highest on record
• Tracker funds – highest year to date net retail sales since 2002
• Ethical funds – net retail sales of £74 million, 25% up on Quarter 3 last year
Richard Saunders, Chief Executive at the IMA, comments:
“Investors continue to show appetite for Funds of Funds, adding a record £5.1 billion so far this year. At the end of September, Funds of Funds accounted for nearly 10 percent of total Funds under Management, also a record high.
“Tracker funds are also increasingly popular, with year to date net retail sales of £599 million, the highest level since 2002.
“Ethical funds continue to form a modest proportion of total sales, but the £74 million in net retail sales for the third quarter was 25 percent up on Quarter 3 last year.”
|FUNDS UNDER MANAGEMENT||Q3 2010||Q3 2009||DIFFERENCE|
|Funds of Funds||£52.0 billion||£39.7 billion||+£12.3 billion||+31%|
|Tracker funds||£30.4 billion||£26.5 billion||+£3.9 billion||+15%|
|Ethical funds||£6.1 billion||£5.5 billion||+£0.6 billion||+12%|
|All funds||£542.6 billion||£463.4 billion||+£79.2 billion||+17%|
|RETAIL SALES (NET)||Q3 2010||Q3 2009||DIFFERENCE|
|Funds of Funds||£1,498 million||£1,055 million||+£443 million|
|Tracker funds||£280 million||£79 million||+£201 million|
|Ethical funds||£74 million||£59 million||+£15 million|
|All funds||£6,964 million||£7,256 million||-£292 million|
FUNDS OF FUNDS
- Year to date 2010 net retail sales the highest on record at £5.1 billion
Net retail sales of Funds of Funds totalled £1.5 billion in Quarter 3 2010, in line with the average of £1.5 billion for the past four quarters. Year to date net retail sales were the highest on record at £5.1 billion, surpassing the annual sales’ levels of all previous years.
Funds under management for Funds of Funds account for 9.6% of total funds under management, the highest market share on record.
Balanced funds (consisting of Active Managed, Balanced Managed, Cautious Managed and UK Equity and Bond Income) account for the highest proportion (60%) of total funds under management for Funds of Funds. Balanced Managed is the highest IMA sector, with 26% of all Funds of Funds under management.
In terms of net sales, Balanced funds saw the highest inflows on record in Quarter 3 at £962.9 million.
The highest selling sector in Quarter 3 was Unclassified, with £693 million or a third (33%) of all Funds of Funds net sales. Cautious Managed was the second highest selling sector, accounting for nearly a quarter (24%) of all Funds of Funds net sales.
The majority of Funds of Funds money continues to be invested in funds run by other firms (external), 58% of funds under management and 67% of net sales in Quarter 3 2010.
- Year to date net retail sales – highest since 2002
Net retail sales of Tracker Funds were £280 million in Quarter 3, over twice the average of £119 million of the past four quarters. Year to date net retail sales of tracker funds were £599 million, the highest level since 2002.
Tracker funds under management were £30.4 billion at the end of the third quarter, up 15% on Quarter 3 last year.
- Net retail sales of £74 million in Quarter 3 2010 – 25% up on this time last year
Net retail sales of Ethical funds totalled £74 million in Quarter 3 2010, above the average of £64 million for the past four quarters and 25% up on Quarter 3 last year.
Ethical funds under management totalled £6.1 billion at the end of the third quarter, 12% up on Quarter 3 last year.
Notes for editors
* The IMA first began to track and publish statistics on Funds of Funds, Ethical and Tracker funds in 1992.
For more details on the figures given in the press release, please see the tables on the links below.
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.
For further information, please contact:
Clare Murphy-McGreevey, Press Officer, IMA, 020 7831 0898
Mona Patel, Head of Communications, IMA, 020 7831 0898 or 07834 089332
The IMA's press releases and statistical information can all be found at www.investmentuk.org
Variations in figures
Each month small revisions to the figures may have been made since previous press releases. This reflects additional information received by the IMA.
The Investment Management Association 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 to promote high standards.