Funds under management of UK domiciled investment funds were GBP354.2bn in January 2009, 18 per cent lower than January 2008 and two per cent down on the previous month, according to th
Funds under management of UK domiciled investment funds were GBP354.2bn in January 2009, 18 per cent lower than January 2008 and two per cent down on the previous month, according to the Investment Management Association.
UK domiciled ISA funds under management of GBP70.8bn were four per cent down on the previous month and 15 per cent lower than the previous year.
Net sales of UK domiciled investment fund ISAs saw inflows of GBP1.4m in January 2009, compared to inflows of GBP52.3m the previous month and outflows of GBP335.3m in January 2008.
The most popular UK domiciled ISA sector in January 2009 was UK All Companies, accounting for 22 per cent of gross ISA sales. In net terms the most popular ISA sector was Guaranteed Protected Funds.
The GBP1.2bn of net retail sales was made up of GBP1.4bn in bond funds and equity outflows of GBP202m. Institutional holdings of unit trusts and OEICs saw an inflow of GBP632m with bond funds accounting for an inflow of GBP623m.
The most popular sector in January 2009 was GBP Corporate Bond, representing 23 per cent of gross retail sales of UK domiciled funds. 88 per cent of gross retail sales into the GBP Corporate Bond sector were via the intermediary channel.
The most popular distribution channel for UK domiciled funds in January 2009 was the intermediary channel, representing 87 per cent of gross retail business. Gross ISA sales of GBP216m from fund supermarkets made them the dominant distributor of ISAs, followed by GBP164m through sales force/tied agents.
The GBP Corporate Bond was the most popular UK domiciled net retail sector with inflows of GBP1bn. The sector with the biggest outflows in January was Europe Excluding UK with net outflows of GBP212m.
Overseas funds under management of GBP15.2bn in January 2009 saw a five per cent decrease on the previous month, while overseas ISA assets of GBP229m fell seven per cent from December 2008.
Net retail sales of overseas domiciled funds in January 2009 were GBP55.9m. Net retail sales of overseas domiciled investment fund ISAs saw sales of GBP0.3m in January 2009, compared to inflows of GBP1.4m seen in December 2008.
Richard Saunders, chief executive of the IMA, says: "Over the last three months investors have been adding to their holdings at a significant rate, with bond funds doing particularly well in December and January. And while ISA sales were modest compared to December, they were still a marked improvement on previous months’ sales outside of the ISA season."
