Press Release

QUARTERLY INVESTMENT FUND STATISTICS FUNDS OF FUNDS, TRACKER AND ETHICAL DATA - Q1 2007

Thursday 10 May 2007

Total investment funds under management £448 billion
Funds under management in funds of funds £30 billion
Net retail sales of funds of funds £420 million
Tracker funds under management £26 billion
Net retail sales of tracker funds -£4.1 million
Ethical funds under management £5 billion
Net retail sales of ethical funds £100 million

Funds of Funds - funds under management
Funds under management at the end of quarter 1 reached £30 billion, up from £29 billion at the end of the previous quarter and an increase of 17% from the same quarter in 2006. Balanced funds continued to account for the majority of funds under management, representing 68% of assets, followed 18% in equities.

Funds of funds - net sales
 Total net sales were £821 million in the first quarter of the year, up from £729 million in Q4 2006, but down 12% from £936 million in Q1 2006. Of the £821 million total net sales, 58% of was invested externally, rather than in internal funds. The most popular net sector in Q1 was cautious managed for the third consecutive quarter, accounting for inflows of £347 million.    

Tracker funds
Funds under management in Q1 reached £26 billion, an increase of 3% from Q4 2006 and 11% from the £24 billion in Q1 2006. Retail sales saw a net outflow of £4 million in the first quarter of 2007, compared with an outflow of £60 million in Q4 2006; the same quarter the previous year saw an outflow of £174 million. The most popular distribution channel for gross retail tracker sales was the intermediary channel accounting for 39% of sales.

Ethical funds
Ethical funds under management in the first quarter of 2007 saw an increase of 8% from the previous quarter and 21% from Q1 2006, passing £5 billion for the first time. Net retail sales of £99.8 million were almost double those seen in Q4 2006, and were three times higher than the same quarter in the previous year.

Richard Saunders, Chief Executive of the IMA commented:

"2007 has started well for funds of funds, which breached the £30 billion mark for the first time. Ethical funds were also off to a good start, passing the £5 billion milestone in the first quarter and seeing net retail inflows of £100 million, the highest for almost five years."