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For immediate release: Wednesday 9 November 2005
QUARTERLY INVESTMENT FUND STATISTICS
FUNDS OF FUNDS, TRACKER AND ETHICAL DATA – QUARTER 3 2005
- Total investment funds under management £324 billion
- Funds under management in funds of funds £21 billion
- Net retail sales of funds of funds £605 million
- Tracker funds under management £20 billion
- Net retail sales of tracker funds -£119 million
- Ethical funds under management £4 billion
- Net retail sales of ethical funds £28 million
Funds of Funds – funds under management
Funds under management at the end of quarter 3 reached £21 billion, up from £17 billion at the end of the previous quarter and an increase of 54% from the same quarter in 2004. Balanced managed funds accounted for the majority of funds under management, representing 70% of assets, followed by 21% in equities. Since Q3 1995 funds under management have increased from £3.3 billion to £21 billion, growing from 3% per cent of total funds under management to 6.5%.
Funds of funds - sales
Total net sales were £733 million in the third quarter of the year, down from £911 million in Q2, but significantly higher than the £298 million seen in Q3 2004. Over 80 per cent were invested externally, rather than in internal funds. The most popular sector in Q3 was Cautious Managed, accounting for inflows of £243 million.
Tracker funds
Funds under management in Q3 2005 reached £20 billion, an increase of 19% from Q2 and 33% from the £15 billion in Q3 2004. Retail sales saw a net outflow in Q3 2005 of £119 million, compared with an inflow of £39 million in Q2; the same quarter the previous year saw an outflow of £73 million. The most popular distribution channel for gross retail tracker sales was the intermediary channel accounting for 37% of sales.
Ethical funds
Ethical funds under management in Q3 2005 also saw an increase from the previous quarter and reached £3.7 billion, an increase of 21% on the same quarter in 2004.
Richard Saunders, Chief Executive of the IMA commented:
“Today we are launching a quarterly analysis of our data, seeking to bring a longer term perspective. For the first time we are highlighting tracker and ethical funds, and sales via funds of funds. Two key trends emerge. The first is the steady recovery in industry sales since the turn of the year. The second is the explosive growth of funds of funds in recent years, reflecting changes under way in the way funds are distributed.”
-Ends-
Glossary
Detailed tables
1. Summary table
2. Quarterly gross retail sales by distribution channel
3. Quarterly net retail sales and net ISA/PEP sales vs FTSE 100
4. Quarterly net retail sales by asset type
5. Quarterly total net sales by client type
6. Comparative performance of £1,000 lump sum over 5, 10 and 15 years
7. Comparative performance of £50 per month savings plan over 5, 10 and 15 years
8. Summary of funds of funds unit trust/OEIC funds under management
9. Summary of funds of funds unit trust/OEIC sales
10. Funds of funds assets and sales by sector
11. Summary of tracker and ethical funds under management and sales
12. Performance of lump sum and savings plans by sector
For further information, please contact:
Helen Stephenson, Communications Officer, IMA, 020 7831 0898
Out of hours contact:
Mona Patel, Head of Communications, IMA, 07834 089332
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