Press Release

QUARTERLY INVESTMENT FUND STATISTICS

6 November 2007

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."