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10 November 2011
Quarterly fund statistics for Funds of Funds, Tracker and Ethical data
Quarter 3 2011
The Investment Management Association (IMA) today publishes its figures for Funds of Funds, Tracker and Ethical funds for Quarter 3 2011.
Richard Saunders, Chief Executive at the IMA, comments:
“Despite a slowdown in fund sales in the third quarter, investors continue to favour funds of funds, with sales holding out much better than funds overall. Funds of funds now account for a record 10.5% of total funds under management.
“Tracker funds are proving increasingly popular with retail investors, with sales so far this year the highest on record.
“Ethical funds maintained their position at just under 1% of total sales.”
|FUNDS UNDER MANAGEMENT||Q3 2011||Q3 2010||DIFFERENCE|
|Funds of Funds||£57.4 billion||£50.6 billion||+£6.8 billion||+13%|
|Tracker funds||£36.2 billion||£34.3 billion||+£1.9 billion||+6%
|Ethical funds||£6.5 billion||£6.4 billion||+£0.1 billion||+2%
|All funds||£546.7 billion||£550.9 billion||-£4.2 billion||-1%|
|RETAIL SALES (NET)||Q3 2011||Q3 2010||DIFFERENCE|
|Funds of Funds||£914 million||£1,414 million||-£500 million|
|Tracker funds||£633 million||£413 million||+£220 million|
|Ethical funds||£46 million||£93 million||-£47 million|
|All funds||£2,594 million||£7,549 million||-£4,955 million|
FUNDS OF FUNDS
Funds of Funds – highest share of total FUM on record
In Quarter 3 2011, net retail sales for Funds of Funds totalled £914 million, the lowest level since Quarter 1 2009 and well below the quarterly average of £1.8 billion for the previous four quarters. Year to date net retail sales of Funds of Funds totalled £4.6 billion, the highest such period on record.
Funds of Funds sales accounted for 9% (£1 in every £11) of total gross retail fund sales in Quarter 3 2011. Funds under management for Funds of Funds totalled £57.4 billion at the end of Quarter 3 2011, accounting for 10.5% of total funds under management, the highest share of total funds under management on record.
In Quarter 3 2011, half (51%) of Funds of Funds money was invested in funds run by other (external) firms. The total invested in external Funds of Funds at the end of September 2011 was £29.1 billion.
Looking at asset classes for Quarter 3 2011, balanced funds (consisting of the Active Managed, Balanced Managed, Cautious Managed and UK Equity and Bond Income sectors) account for around three-quarters (73%) of the £45.7 billion funds under management for Funds of Funds that are classified to the IMA sectors.
Tracker funds – year to date net retail sales the highest on record
In Quarter 3 2011, net retail sales of tracker funds totalled £633 million, above the quarterly average of £511 million for the past four quarters. Year to date net retail sales of tracker funds totalled £1.7 billion, the highest such period on record and almost double the same period in 2010.
Tracker funds under management were £36.2 billion at the end of September 2011, accounting for 6.6% of total funds under management, in line with recent quarters.
Tracker funds' share of total gross retail sales was 6.6% in Quarter 3 2011, the highest quarterly share of gross retail sales since Quarter 1 2002.
Of the 81 Tracker funds, 41 (51%) track the main UK indices, mainly the FTSE 100 and FTSE All Share indices. The remainder track a wide spread of other equity indices, including European, Global, Asia Pacific and the US.
Net retail sales of £46 million, the lowest level since Quarter 2 2009
In Quarter 3 2011, net retail sales of Ethical funds totalled £46 million, below the quarterly average of £93 million for the previous four quarters and the lowest level since Quarter 2 2009.
Ethical funds under management totalled £6.5 billion at the end of September 2011. Ethical funds continue to account for 1.2% of total funds under management.