QUARTERLY INVESTMENT FUND STATISTICS
FUNDS OF FUNDS, TRACKER AND ETHICAL DATA - Q3 2007

• Total investment funds under management £468.3 billion
• Funds under management in funds of funds £33.1 billion
• Net retail sales of funds of funds £322.9 million
• Tracker funds under management £27.1 billion
• Net retail sales of tracker funds -£26.7 million
• Ethical funds under management £5.8 billion
• Net retail sales of ethical funds £135.5 million

Funds of Funds - funds under management
Funds under management at the end of Q3 reached £33.1 billion, up from £32.1 billion at the end of the previous quarter and an increase of 21% from the same quarter in 2006. Balanced funds accounted for the majority of funds under management, representing 68% of assets, followed by 18% in equities.

Funds of funds - net sales
Total net sales were £803.4 million in Q3, down from £1 billion in Q2 and £894.1 million seen in Q3 2006. 57% was invested externally, rather than in internal funds.  The most popular sector in Q3 as Cautious Managed, accounting for inflows of £379.2 million. 

Tracker funds
Funds under management in Q3 2007 reached £27.1 billion, a slight decrease from Q2 (£27.5billion) and an increase of 14% from Q3 2006. Retail sales saw a net outflow of £26.7 million in Q3 2007 compared with an outflow of £11.8 million in Q2; the same quarter the previous year saw an outflow of £31.7 million. The most popular distribution channel for gross retail tracker sales was the intermediary channel, accounting for 52% of sales.

Ethical funds
Ethical funds under management in Q3 2007 reached £5.8 billion, an increase of 28% on the same quarter in 2006. Retail sales saw a net inflow in Q3 2007 of £135.5 million, compared to an inflow of £137.7 million in Q2; the same quarter the previous year saw an inflow of £23.1 million. 

Richard Saunders, Chief Executive of the IMA commented:

"The third quarter showed a modest slow down in net retail sales across the board, affecting most asset classes as well as funds of funds.  Index tracking funds continue to go through a period of outflow, but ethical funds are experiencing steadily increasing sales, albeit from a low level."

-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:
Noreen Shah, Press Officer, IMA, 020 7831 0898
Mona Patel, Head of Communications, IMA, 07834 089332