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For immediate release: Tuesday 5 January 2010
INVESTORS CONTINUE TO BUY FUNDS AT RECORD LEVELS
Investment fund statistics - November 2009
Key findings from the Investment Management Association (IMA)'s figures for the fund management industry for November 2009:
- Net retail sales in November over £2 billion for the eighth month running
- Net retail sales year-to-date are 10 times higher than a year ago
- Net ISA sales almost £2.6 billion year-to-date - the best since 2002
- Funds under management total £467 billion - 38% higher than in November 2008
- Property funds the highest selling IMA sector for the second month running
Richard Saunders, Chief Executive of the IMA, commented:
"November saw a continuation of record fund sales - with investors putting in ten times more money in 2009 than they did in the first eleven months of 2008. It is good to see investors once again taking advantage of the benefits of ISAs after several years of net outflows.
"The last few months have seen a resurgence of sales of Equity and Property funds. This is in sharp contrast to the beginning of the year when Bond funds were outselling other asset types and the Property sector was seeing outflows."
Funds under management
Net retail sales
Net ISA sales
UK DOMICILED FUNDS
Total net retail sales of £2.4 billion in November 2009 marked the eighth consecutive month in which sales topped £2 billion. This brings the total to £23.6 billion for the year-to-date - more than 10 times the level a year ago (£2.3 billion). (See Table 3, and Chart 2)
Funds under management
Total funds under management stand at £467.3 billion, £128.6 billion (38%) higher than they were in November 2008 when they stood at £338.7 billion, reflecting both record inflows and the recovery of stock markets. (See Table 2). At the end of November 2009, the FTSE 100 stood at 5191 - this compares to 4288 a year earlier.
Equities proved more popular than Bonds for the third consecutive month, with net retail sales of £930 million - nearly five times the £187 million achieved by Bonds in November. (See Table 4)
However Bonds are still ahead of Equities year-to-date, with net sales totalling £9.6 billion (41% of total net retail sales) compared to Equities at £6.8 billion (29%).
Global equity funds achieved 36% more net retail sales than UK equity funds (£319 million -v- £235 million) during November.
Year-to-date however UK funds still lead Equity sales, with £2.0 billion in net retail sales (29% of the total) followed by Global equity funds at £1.7 billion (25%) and Asia Pacific at £1.4 billion (20%). Both European and Japanese equities have recorded net outflows year-to-date.
Institutional sales showed a different pattern. Total net institutional sales totalled £385 million in November, with Equity funds seeing an outflow of £215 million whereas Bond funds saw an inflow of £341 million. (Table 4)
Property was the top selling sector for the second month running, with £417 million in net retail sales, the highest achieved since March 2007 (£467 million). (Table 8)
Back in January 2009 Property ranked 28th out of the 34 sectors, with net outflows of £35 million. The top selling fund in January was £ Corporate Bonds (£1,036 million), which in November ranked 29th with net outflows of £10 million. £ Corporate Bonds were the top selling sector for the first eight months of 2009. (Table 9)
Gross ISA sales of £987 million in November 2009 were the highest ever monthly sales outside the ISA season (March and April), topping October's record breaking £965 million. They were more than double the £449 million achieved in November 2008. (Table 3)
Overseas funds under management totalled £24.0 billion in November. November saw net outflows of £11.8 million - in contrast to the position a year ago, when November 2008 saw net retail sales of £109.6 million. (Table 6)
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:
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.