For immediate release: Wednesday 9 August 2006

QUARTERLY INVESTMENT FUND STATISTICS
FUNDS OF FUNDS, TRACKER AND ETHICAL DATA – Q2 2006

• Total investment funds under management £370 billion
• Funds under management in funds of funds £26 billion
• Net retail sales of funds of funds £905 million
• Tracker funds under management £23 billion
• Net retail sales of tracker funds £27 million
• Ethical funds under management £4 billion
• Net retail sales of ethical funds £26 million

Funds of Funds – funds under management
Funds under management at the end of quarter 2 were £25.7 billion, marginally down from £25.9 billion at the end of the previous quarter, but an increase of 48% from the same quarter in 2005. Balanced managed funds accounted for the majority of funds under management, representing 69% of assets, followed by 18% in equities. The split between funds invested internally and those invested externally remains consistent with 55.3% of funds under management invested internally and 44.7% invested externally.

Funds of funds - net sales
Total net sales were £1.2 billion in the second quarter of the year, up 27% from the £938 million in Q1, and 29% higher than Q2 2005. The most popular total net sector in Q2 2006 was Cautious Managed, accounting for inflows of £404 million. 

Tracker funds
Funds under management in Q2 2006 were £23 billion, a fall of 2% from the previous quarter but 36% higher than the £17 billion in Q2 2005. Retail sales saw a net inflow of £27 million in Q2 2006, significantly higher than the outflow of £174 million in the previous quarter, but 32% down on Q2 2005. The most popular distribution channel for gross retail tracker sales in Q2 was the intermediary channel accounting for 49% of sales.

Ethical funds
Ethical funds under management in Q2 2006 of £4.3 billion saw a decline of 4% from the previous quarter but were 22% higher than the same quarter 2005. Although net retail sales of ethical funds in the second quarter of 2006 saw an increase of 13% from Q2 2005, they were down 24% from the first quarter 2006.  

Sheila Nicoll, Deputy Chief Executive of the IMA commented:

“For the second consecutive quarter net retail sales of funds of funds exceeded £900 million. In quarter 2 of 2006 they represented one quarter of total net retail sales into unit trusts and OEICs. Balanced funds, in particular those in the cautious managed sector, continued to dominate net sales of funds of funds.”   

 

-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