For immediate release: Monday 28 July 2008

INVESTMENT FUND STATISTICS
June 2008

UK Domiciled funds

Funds under management 
Funds under management of UK domiciled investment funds were £425.2 billion in June 2008, 6% lower than the previous month and 9% lower than June 2007. UK domiciled ISA funds under management of £87.8 billion were 6% down compared to the previous month and also compared to the same month the previous year.

Graph showing UK domiciled funds under management since June 2007

ISA sales   
As of April 2008 PEPs were merged into stocks and shares ISAs.  For comparison purposes, IMA ISA data for periods prior to April 2008 will combine PEPs and ISAs. This will apply to both UK and Overseas domiciled fund statistics.

Net sales of UK domiciled investment fund ISAs saw outflows of £209.9 million in June 2008, compared to outflows of £198.3 million the previous month and outflows of £174.7 million in June 2007.

The most popular UK domiciled ISA sector in June 2008 was UK All Companies, accounting for 19% of gross ISA sales.  In net terms the most popular ISA sector was Cautious Managed.

UK domiciled net sales by asset class 
There were £140 million net retail sales, with the biggest net inflow into the ‘other' category, driven by absolute return funds. Balanced funds had inflows of £126 million while equity funds saw outflows of £371 million. Institutional holdings of unit trusts and OEICs saw overall outflows of £503 million. This included a £658 million outflow from money market funds and a £450 million inflow into bond funds.

Graph showing net retail sales of UK domiciled funds over the last 13 months

Gross retail sales by sector and distribution channel 
The most popular sector in June 2008 was UK All Companies, representing 16% of gross retail sales of UK domiciled funds. 75% of gross retail sales into the UK All Companies sector were via the intermediary channel.

The most popular distribution channel for gross retail sales of UK domiciled funds in June 2008 was the intermediary channel, at 85%. Gross ISA sales of £313 million from fund supermarkets made them the dominant distribution channel for ISAs, followed by £245 million through sales force/tied agents.

Best selling sector for UK domiciled funds
The Absolute Return sector was the most popular UK domiciled net retail sector with inflows of £214 million. Property funds saw net retail outflows of £14 million. The sector with the biggest net retail outflows in June 2008 was the UK All Companies sector with a net outflow of £164.7 million.

OVERSEAS FUNDS

Overseas funds under management of £16.2 billion in June 2008 saw a 6% decrease from the previous month, while overseas ISA assets of £304 million fell 13% from May 2008.

Net retail sales of overseas domiciled funds in June 2008 saw outflows of £164.7 million. Net retail sales of overseas domiciled investment fund ISAs saw outflows of £1.9 million in June 2008, compared to outflows of £0.1 million in May 2008.

Summary of overseas domiciled funds - FUM and sales  

Richard Saunders, Chief Executive of the IMA commented:

"Net retail sales of both onshore and offshore funds returned in June to the subdued levels of earlier in the year. The exception was the new absolute return sector, which saw inflows of over £200 million and now stands above £2 billion.  Taken with the continued outflows from equity funds, this clearly demonstrates the limited risk appetite of investors at the moment."

-Ends-

Glossary

Detailed tables
1. Summary table 
2. UK domiciled funds under management by asset class
3. UK domiciled unit trust/OEIC sales
4. UK domiciled net sales by asset class
5. UK domiciled gross retail sales - 10 year summary
6. Overseas domiciled FUM and sales
7. Sector summary - current month
8. Retail business by sector and channel - current month
9. UK domiciled summary of best and worst selling sectors
10. UK domiciled funds under management - 13 month chart
11. UK domiciled net retail sales - 13 month chart
12. Performance of average UK domiciled fund by IMA sector

If you have any comments on presentation of the monthly statistics please e-mail press@investmentuk.org

For further information, please contact:
Noreen Shah, Press Officer, IMA, 0207 831 0898
Mona Patel, Head of Communications, IMA, 07834 089332