IMA's May fund statistics show fall in sales, but ISA sales hold up

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The Investment Management Association today publishes its monthly fund statistics for May 2010.

Key findings:

- Net retail sales fall below £1 billion for the first time in 18 months
- Funds under management £492.6 billion, down by 3.5%
- ISA sales holding up
- Absolute Return is the most popular IMA sector
- Fund Platforms continue to increase their market share

Richard Saunders, Chief Executive of the Investment Management Association, comments:

"The results for May tell a mixed story. Net retail sales figures have dipped below £1 billion for the first time since November 2008. ISA sales have, however, held up well. During a period of market uncertainty, fuelled by the Euro area crisis and post the UK election, investors have chosen to invest mostly in sectors with more flexible investment strategies."

FUNDS UNDER MANAGEMENT

Funds under management the third highest on record
Funds under management stood at £492.6 billion at the end of May 2010, 3.5% down on April's record £510.6 billion, and the third highest level on record. This is lower than both March and April, but just above February's level, and 25% above the level a year ago.

SALES

Net retail sales the lowest since November 2008
ISA sales the highest since 2000 for the single month of May
May 2010 saw net retail sales of £948 million, 56% lower than the previous month, and the first time it has dropped below £1 billion since November 2008. Gross retail sales were 12% down month-on-month at £7.8 billion, but retail repurchases - where investors sell their investments - were the second highest on record at £6.8 billion.

ISA sales

In May 2010 net ISA sales totalled £503 million, the highest figure for any month of May since 2000. So far this year, net ISA sales total £2.8 billion, the highest January to May since 2001.

RETAIL DISTRIBUTION

All channels saw a fall in gross sales
Fund Platforms continue to increase their market share
All retail sales channels saw a fall in gross sales.

Gross retail sales for ‘Other Intermediaries' - primarily Wealth Managers and Stockbrokers - fell 12%, to £3.7 billion in May. Repurchases - where investors sell their investments - were up 13% to £3,667 billion.

Fund Platforms saw an 8% fall in gross retail sales to £3.0 billion and a 3% increase in repurchases.
Direct saw the biggest percentage fall, with gross retail sales down 19% to £983 million, but also a 29% fall in repurchases.

In May Fund Platforms' market share of sales for the month increased to 39%, up 1 percentage point compared to April and up 5 percentage points from January this year, when the figures were first recorded.

‘Other Intermediaries' saw their market share stay the same, at 48%, while Direct sales fell by 1 percentage point.

ASSETS

The leading Asset Class was ‘Other' with net retail sales of £361 million, largely driven by the Absolute Return-UK sector.

Both Equity and Bond sales fell to just over £100 million, with net retail Equity sales at £111 million, the lowest since February 2009 and net retail Bond sales at £102 million, the lowest since August 2008.

Net retail Property sales came in just below this level at £96 million, the lowest since July last year.

All asset classes showed positive net retail inflows.

SECTORS

Absolute Return was the best selling IMA Sector in May, with net retail sales of £181 million. The Sector, which was launched in April 2008, has been in the Top 5 selling IMA sectors for 21 out of 26 months since then. It was the best selling IMA Sector three times in the Summer of 2008 and twice last year (September and December).

Global Growth was the second most popular IMA Sector in May. Another Equity Sector, North America, came fifth. There were no Equity Sectors in the Top Five in the previous month.

Cautious Managed - the top selling IMA Sector in April - came third, with £ Strategic Bond, which was the top selling IMA Sector in the two previous months, fourth.

INSTITUTIONAL FUNDS
Institutional funds sales were £1.5 billion in May 2010.

OVERSEAS DOMICILED FUNDS

Overseas domiciled funds saw an inflow of £34 million in May 2010.

Please click here for the full tables.

http://www.investmentfunds.org.uk/press/2010/stats/stats0610.asp