Glossary of terms used in IMA Statistics

• Balanced funds
  This includes funds investing in a mixture of asset classes in the following sectors - Active Managed, Balanced Managed, Cautious Managed and UK Equity and Bond Income.  Some Fund of Funds are included in these sectors.
  
  
• Bond funds
  This includes funds investing in fixed interest securities (eg bonds and gilts issued by companies and Governments and providing regular, fixed interest payments) in the following sectors – UK Gilts, UK Index Linked Gilts, UK Corporate Bond, UK Other Bond and Global Bond. Also included is the UK Zeros sector whose funds are required to invest at least 80% of their assets in zero dividend preference shares.
  
  
• Direct from public
  Distribution channel representing transactions made directly between the investor and fund management group.
  
  
• Equity funds
  This includes funds predominantly investing in equities in a specific geographic area or stock market sector in the following sectors: UK All Companies, UK Smaller Companies, UK Equity Income, Japan, Japanese Smaller Companies, Asia Pacific Excluding Japan, Asia Pacific Including Japan, North America, Europe Including UK, Europe Excluding UK, North America Smaller Companies, European Smaller Companies, Technology and Telecommunications, Global Growth, Global Emerging Markets and Specialist.
  
  
• Funds under management (FUM)
  Calculated by multiplying the total number of units in issue by the price. IMA’s funds under management represent the value of the unit trust/OEIC market.
  
  
• Fund supermarket
  Distribution channel which represents transactions made by an investor or intermediary through an online platform.
  
  
• Gross sales
  All money flowing into UK authorised unit trusts and OEICs both as a result of new sales and via switches between funds. Can be split into total, retail, ISA, PEP and institutional sales and is the value of money going into funds before redemptions are taken out.
  
  
• Institutional business
  Sales and repurchases made by institutions such as life insurance companies, fund managers, pension funds and charities.    
  
  
• Intermediary
  Distribution channel representing transactions made through a third party who may, but not always, provide financial advice e.g independent financial advisers.
  
  
• ISA sales
  Sales into unit trusts and OEICs through the ISA tax wrapper. Figures are included in the “retail” category.
  
  
• Money Market funds
  Funds investing at least 95% of their assets in short term cash and near cash investments. They offer a way for small savers to get ‘wholesale’ rates of interest and at the same time retain easy access to their money.
  
  
• Net sales
  All new money flowing into UK authorised unit trusts and OEICs after redemptions. Often referred to as “new money”, net can be split into total, retail, ISA, PEP and institutional sales and is the value of money going into funds after switches and redemptions are taken out.
  Rule of thumb: gross sales minus repurchases = net sales. 
  
  
• Other funds
  Funds with characteristics that are not defined by the other major categories. Sectors grouped into “other” include pension funds, guaranteed/protected funds and unclassified funds.  
  
  
• Overseas domiciled funds 
  Unit trusts and OEICs which are based outside of the UK (but within Europe) and which are authorised by the Financial Services Authority and sold into the UK via distributor status.
  
  
• PEP sales
  Sales into unit trusts and OEICs through the PEP tax wrapper. Net PEP sales appear negative as investors are no longer able to place money inside a PEP. Gross PEP sales represent transfers between funds only.
  
  
• Private Client
  Distribution channel representing transactions through a discretionary portfolio manager.
  
  
• Repurchases
  Refers to the sale of units back to the fund manager and can consist of redemptions, whereby investors cash in, but also switches between funds.
  
  
• Retail business
  Sales and repurchases made by or on behalf of an individual investor who benefits from direct ownership of the investment funds. “Retail” business also includes sales of unit trust/OEIC PEPs and ISAs.
  
  
• Sectors
  IMA classifies investment funds into a variety of categories to keep together funds with similar investment objectives or asset allocation. e.g. Money Market, North American funds, Active Managed and UK Corporate Bond.
  
  
• Sales force/tied agent sales
  Distribution channel which represents transactions made through a third party who can only advise on their own company products or those products available from companies to which they are ‘tied’ e.g. banks. 
  
  
• UK domiciled funds 
  Unit trusts and OEICs which are based in the UK and which are authorised and regulated by the FSA.
  
  
• Unclassified sector
  Funds whose objectives and underlying assets do not fulfil the definitions of the other categories.