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Press Release

Thursday 10 February 2011

FUNDS OF FUNDS REPRESENT £1 IN EVERY £8 INVESTED IN FUNDS – IMA FIGURES SHOW

Quarterly fund statistics for Funds of Funds, Tracker and Ethical data

Full Year 2010 and Quarter 4 2010

The Investment Management Association (IMA) today publishes its figures for Funds of Funds, Tracker and Ethical funds for the full year 2010 and Quarter 4 2010*.

Key findings for 2010:

  • Funds of Funds – gross retail sales account for £1 in every £8 invested in all funds
  • Funds of Funds – the highest net retail sales on record
  • Tracker funds –  net retail sales the highest since 2000
  • Ethical funds  – net retail sales up 80% on 2009

Richard Saunders, Chief Executive at the IMA, comments:     

“Investors continue to show appetite for funds of funds, adding a record £6.8 billion in 2010. In gross sales terms, £1 in every £8 invested in funds was invested in funds of funds. They now account for 10 percent of total funds under management, also a record high.

“Sales of tracker funds are their highest in a decade.

“Ethical fund sales are up 80 percent on 2009, although they continue to form a modest proportion of total sales."

FUNDS UNDER MANAGEMENT 2010 2009
Funds of Funds £58.2 billion £42.7 billion
Tracker funds £33.5 billion £27.8 billion
Ethical funds £6.6 billion £5.6 billion
All funds £577.6 billion £480.6 billion

 

RETAIL SALES (NET) 2010 2009 Q4 2010 Q3 2010
Funds of Funds £6,844 million £3,894 million £1,764 million £1,501 million
Tracker funds £1,182 million £406 million £573 million £290 million
Ethical funds £280 million £155 million £72 million £74 million
All funds £23,936 million £25,880 million £6,005 million £6,956 million

FUNDS OF FUNDS

  • 2010 gross retail sales of Funds of Funds account for £1 in every £8 invested in funds
  • 2010 net retail sales the highest on record at £6.8 billion

2010’s net retail sales of Funds of Funds were the highest on record at £6.8 billion, up 76% on 2009’s £3.9 billion.

Funds of Funds sales accounted for £1 in every £8 invested in funds (12% of gross retail sales) in 2010.

Funds under management for Funds of Funds totalled £58.2 billion at the end of 2010, accounting for 10% of total funds under management, the highest market share on record. 

2010’s net retail sales of Unclassified, Balanced Managed and Cautious Managed are the highest on record.

Looking at asset classes, balanced funds (consisting of Active Managed, Balanced Managed, Cautious Managed and UK Equity and Bond Income) account for the highest proportion (59%) of total funds under management for Funds of Funds.

The majority of Funds of Funds money continues to be invested in funds run by other firms (external): 69% of gross sales and 58% of funds under management. The total invested in external Funds of Funds at the end of 2010 was £33.9 billion, up 43% on 2009. 

In Quarter 4 2010, net retail sales for Funds of Funds totaled £1.8 billion, the majority of which (£798 million) was invested in balanced funds.

Looking at IMA sectors, the highest selling sector in Quarter 4 2010 was Unclassified, with net retail sales of £668 million and 17% of all Funds of Funds under management.

Cautious Managed was the second highest selling IMA sector, with net retail sales of £615 million and 21% of all Funds of Funds under management.


TRACKER FUNDS

  • 2010 net retail sales – highest in a decade

Net retail sales of Tracker Funds were £1.2 billion in 2010, the highest level since 2000. Only in 1998, 1999 and 2000 were sales of tracker funds higher than in 2010.

In Quarter 4 2010, net retail sales of tracker funds totalled £573 million, the highest since Quarter 1 2000.

Tracker funds under management were £33.5 billion at the end of 2010, up 20% on 2009.

Of the 70 Tracker funds, 34 (49%) track the main UK indices, mainly the FTSE All Share and the FTSE 100 indices. The remainder track a wide spread of other equity indices, including European, Global, Asia Pacific and the US. 


ETHICAL FUNDS

  • 2010 net retail sales of £280 million – up 80% on 2009 

2010 saw the highest net retail sales of Ethical funds since 2007, with £280 million in net retail sales, up 80% on 2009.

In Quarter 4 2010, net retail sales of Ethical funds totalled £72 million, slightly above the average of £68 million for the past four quarters.

Ethical funds under management totalled £6.6 billion at the end of 2010, up 16% on 2009.

The number of funds in the IMA Ethical category stood at 47 at the end of 2010, slightly down from 52 in 2009, but offering considerably more choice to investors than the 35 available in 2000 when net retail sales totalled just £329 million.

-ENDS-

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.

All tables

1. Summary 

2. Fund of Funds - funds under management by asset type

3. Fund of Funds - sales

4. Fund of Funds - sales by asset type

5. Tracker and Ethical funds - funds under management and sales

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.

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