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Press Release

Thursday 29 September 2011

HIGHEST SELLING MONTH ON RECORD FOR SALES OF GLOBAL EQUITY FUNDS – IMA STATISTICS REVEAL

Investment fund statistics - August 2011

The Investment Management Association today publishes its monthly fund statistics for August 2011.

Key findings: 

  • Net retail sales of £1.1 billion
  • Net ISA sales of £177 million
  • Global the top selling IMA sector in August, the highest month on record

Jane Lowe, Director of Markets at the Investment Management Association (IMA), comments:

“Despite volatile markets in August, net retail sales of funds remained steady, with investors adding £1.1 billion to their portfolios. Interestingly, investor appetite for equities was strong in August, with net retail sales of £515 million. 

“Equity investment occurred in several sectors. Sales of global equity funds were the highest on record in August. However, the UK Equity Income and UK All Companies sectors were also popular, with UK Equity Income reporting its highest sales since May 2007.”

 

SUMMARY
UK DOMICILED
FUNDS UNDER
MANAGEMENT
RETAIL SALES
(NET)
ISA SALES
(NET)
August 2011 £561.5 billion £1.1 billion £177 million
August 2010 £522.1 billion £2.6 billion £145 million

 

UK DOMICILED FUNDS

SALES

August saw net retail sales of £1.1 billion, an increase on July’s £938 million but below the monthly average of £2.2 billion for the previous twelve months. Year to date net retail sales totalled £15.1 billion compared with £18.6 billion in the same period last year.

Both gross sales and repurchases were higher in August than in recent months, indicating higher turnover of funds by investors than usual.

ISA sales

August saw £177 million in net ISA sales, above the monthly average of £156 million for the previous twelve months, excluding the ISA season of March and April. Year to date net ISA sales totalled £3.0 billion, compared with 2010’s £3.6 billion for the same period. 

FUNDS UNDER MANAGEMENT

Funds under management in August totalled £561.5 billion, down 5.8% on July.

Funds under management for ISAs totalled £100.6 billion in August 2011, down 6.5% on July.

(See Table 2)

ASSETS

In contrast to July’s outflow, Equities was the highest selling asset class in August, with net retail sales of £515 million, below the monthly average of £606 million for the previous twelve months.

The second highest selling asset class was Balanced, with net retail sales of £347 million in August, below the monthly average of £552 million for the previous twelve months.

Net retail sales of Bond funds totalled £108 million in August, the lowest level since January 2011 and well below the monthly average of £495 million for the previous twelve months.

Property funds saw a net retail outflow of £52 million in August, the first outflow since March 2009.

In August net retail sales of money market funds totalled £84 million, their highest sales since March 2006, when inflows totalled £102 million.

Net sales of ISAs were concentrated in Bond and Balanced funds, indicating that ISA investors were more cautious than non-ISA investors in August.

(See Table 4)

SECTORS

Global was the best selling IMA Sector, with net retail sales of £337 million in August, the highest selling month on record, though only slightly ahead of June’s £332 million. Year to date net retail sales of the IMA Global Sector totalled £1.8 billion. 

UK Equity Income was the second most popular IMA Sector with £211 million in net retail sales, the highest level since May 2007 and compared with a monthly average of £53 million over the previous twelve months.

Cautious Managed was the third most popular IMA Sector in August, with net retail sales of £198 million, below the average of £319 million over the previous twelve months.

Net retail sales of Balanced Managed, the fourth most popular IMA Sector, totalled £156 million in August.

UK All Companies, the fifth highest selling sector, reported net retail sales of £142 million, up from last place in July and the highest level since December 2010.

The IMA Absolute Return UK sector saw a net retail outflow of £122 million in August, the largest outflow since the sector’s formation in April 2008 and compared with a monthly average inflow of £162 million over the previous twelve months.

 

TOP FIVE SELLING IMA SECTORS (NET RETAIL SALES) 

IMA Sector Asset Class Ranking - 
August 2011
Ranking -  
July 2011
 Global  Equities  1  10
 UK Equity Income Equities  2  23
 Cautious Managed Balanced  3  1
 Balanced Managed Balanced  4  3
 UK All Companies Equities  5  32

 (See Table 8d)

RETAIL DISTRIBUTION

Gross retail sales for 'Other Intermediaries' - which includes Wealth Managers and Stockbrokers - totalled £5.0 billion for August, taking the largest market share in August, with 48% of total sales.

Gross retail sales through Fund Platforms* totalled £4.1 billion in August. Platforms’ market share was 40% in August.

Direct channels’ gross retail sales totalled £1.2 billion in August. Sales through direct channels accounted for 12% of total sales.

 (See Table 5)

FUND PLATFORMS

Funds under management for Fund Platforms** were £107 billion in August 2011.

Gross sales across all products (ISAs, Insurance Bonds, Personal Pensions, Unwrapped) sold through Fund Platforms increased from July to August 2011.

Gross sales through UK fund platforms totalled £3.4 billion, while total repurchases were £2.6 billion, both higher than levels seen over the previous twelve months when excluding the ISA season of March and April. The high gross sales and repurchases seen in August indicate high turnover in funds by investors.

(See Table 6)

INSTITUTIONAL FUNDS

Institutional funds saw net sales of £325 million in August 2011. 

(See Table 4)

OVERSEAS DOMICILED FUNDS

Overseas domiciled funds saw net retail outflows of £195 million in August 2011, compared with the monthly average inflow of £139 million for the previous twelve months.
 

OVERSEAS
DOMICILED
FUNDS UNDER
MANAGEMENT
RETAIL SALES
(NET)
ISA SALES
(NET)
August 2011 £32.1 billion £-195.3 million £-2.4 million
August 2010 £23.5 billion £-124.1 million £-0.3 million

 

(See Table 10)

-ENDS-

For further information, please contact:
Clare Murphy-McGreevey, Media Relations Manager, IMA, 020 7831 0898 or 07843 517618
Mona Patel, Head of Communications, IMA, 020 7831 0898 or 07834 089332
Louise Marriott, Lansons Communications, 020 7566 9723
Jennifer Stevens, Lansons Communications, 020 7566 9723

The IMA's press releases and statistical information can all be found at www.investmentuk.org

Notes for Editors

For more details on the figures given in the press release, please see tables 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   Sales - by Platforms
7   Sectors - funds under management and sales
8   Sectors - gross and net sales                                     
9   Sectors - best and worst selling
10 Offshore funds - funds under management and sales 
11 Sectors - investment performance

Graphs

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

The IMA's figures for fund sales cover UK authorised unit trusts and open ended investment companies (OEICs).  The IMA publishes these figures on a monthly basis.

Funds comprise a key element of the UK's £4 trillion asset management industry, which also covers pension and insurance company funds, including £1 trillion invested on behalf of overseas clients.  Each year the IMA publishes its annual Asset Management Survey, which looks at the industry in the round. 

Net retail sales comprise total retail sales minus repurchases, thus the figures can result in a negative figure or outflow. 

Definition of the IMA Global Sector
Funds which invest at least 80% of their assets globally in equities. Funds must be diversified by geographic region.

Notes:
1. The main focus of funds which elect to be classified to this sector should be geographic diversification.
2. Funds which qualify for a UK, regional or the Global Emerging Markets equity sector will be excluded.
3. Funds may elect to be classified to the Global sector on the basis of geographic diversification even where a style or thematic bias exists - for example Global Consumer funds, Global Climate Change funds, Global Income funds, Global Smaller Companies funds. 
4. Global funds which focus solely on a single industry sector may also elect to be classified to the Global sector, subject to maintaining geographic diversification - for example all types of Global Commodity funds (Agriculture/ Resources/Gold), Global Financials, Global Pharmaceuticals funds. 

Fund Platforms
* The figure for Fund Platform sales covers 12 Platforms comprising Ascentric, Aviva Wrap, AXA Elevate, Cofunds, Fidelity; Hargreaves Lansdown, James Hay Wrap, Novia, Nucleus, Skandia (including Selestia, Skandia Multifunds and Skandia Life), Standard Life Savings, and Transact. Platform data includes sales made through IFAs as well as direct.

** Five leading Fund Platforms - Cofunds, Fidelity, Hargreaves Lansdown, Skandia and Transact - provide the IMA with figures of their sales, repurchases and funds under administration, with figures going back to January 2008.  The five platforms are providing sales data for ISAs, Personal Pensions, Insurance Bonds, and funds sold without a wrapper (unwrapped).  Between them, these five leading platforms account for around 85% of the gross sales of the full list of Platforms included in the section on retail distribution.

Direct Channels
Direct includes sales forces and tied agents, private clients and other direct to investor sales without intermediation.

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.

About the Investment Management Association
The IMA is the trade body for the UK's £4 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.  Our purpose is to support and promote a commercially successful and growing UK investment management industry as we seek to improve the financial outcomes for customers - savers and investors.

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