The Investment Association today publishes its statistics for authorised investment funds for January 2015:
Daniel Godfrey, The Investment Association Chief Executive, said:
“Net retail sales in January were markedly below 2014’s monthly average. However, we are still seeing some common trends from the last quarter of 2014, with investors continuing to seek investment funds with income objectives with both UK Equity Income and Global Equity Income in the top five selling Investment Association sectors.”
FUNDS UNDER MANAGEMENT AND NET SALES
|Funds Under Management||Net Retail Sales||Net Institutional Sales|
|January 2015||£854 billion||£320 million||-£5,048 million|
|January 2014||£758 billion||£1,125 million||-£844 million|
Property returned as the best-selling asset class in January 2015 with net retail sales of £235 million, having last been the top selling in November 2014.
Fixed Income was the second best-selling asset class in January with net retail sales of £146 million, the highest we have seen since May 2014.
Mixed Asset was the third best-selling asset class in January with net retail sales of £65 million, the lowest since January 2009.
Equity saw a net retail outflow of £14 million in January, well down from £816 million in December 2015, and the lowest sales figures since September 2014.
NET RETAIL SALES OF EQUITY FUNDS BY REGION*
Global equity funds were easily the best-selling in January with net retail sales of £334 million.
European equity funds were the second best-selling with net retail sales £95 million.
North American equity funds were the third best-selling region with net retail sales of £75 million.
UK equity funds saw negative sales with a net outflow of £515 million in January – reversing a net inflow of £432 million in December 2014. This is the lowest level of UK equity funds sales since January 2008 when net retail sales were -£558m.
Net retail sales
in January 2015
Average net retail sales
for previous 12 months
|Global||£334 million||£268 million|
|Europe||£95 million||£18 million|
|North America||£75 million||-£27 million|
|Japan||£6 million||£38 million|
|Asia||-£9 million||£4 million|
|UK||-£515 million||£425 million|
( Table 4)
THE INVESTMENT ASSOCIATION SECTOR RANKINGS
The top five best-selling Investment Association sectors for January 2015 were:
The worst-selling Investment Association sector for January 2015 was UK All Companies which saw a net retail outflow of £679 million.
|Investment Association Sector||
Net Retail Sales
in January 2015
|UK Equity Income||1||£280 million||1||Equity|
|£ Corporate Bond||4||£192 million||10||Fixed Income|
|Global Equity Income||5||£123 million||7||Equity|
( Tables 5,6,7)
In January 2015, UK fund platforms continued to see the highest gross retail sales at £5.8 billion, representing a 49.6% market share (52.8% in January 2014).
Gross retail sales for Other Intermediaries (includes Wealth Managers, Stockbrokers and IFAs) totalled £5.0 billion in January 2015 representing a market share of 42.8% (40.0% in January 2014).
Direct gross retail sales in January 2015 were £886 million, representing a market share of 7.6% (7.2% in January 2014).
( Table 8)
FUND PLATFORM PRODUCT SALES
For the five fund platforms that provide data to The Investment Association (Cofunds, Fidelity, Hargreaves Lansdown, Old Mutual Wealth and Transact) net sales for January 2015 were £470 million.
Personal Pensions had the highest net sales at £309 million, followed by Unwrapped (£96 million), ISAs (£69 million) and Insurance Bonds (-£5 million).
For the same five fund platforms, funds under management as at the end of January 2015 were £187 billion, compared with £162 billion a year earlier.
( Table 9)
In January 2015, ISAs saw a net retail outflow of £159 million through fund companies and the five fund platforms that provide data to The Investment Association (Cofunds, Fidelity, Hargreaves Lansdown, Old Mutual Wealth and Transact), compared to a net retail outflow of £62 million in January 2014.
( Table 10)
The top three best-selling sectors for ISAs based on the five fund platforms were:
( Table 5)
FUND OF FUNDS
Net retail sales for funds of funds in January 2015 were £17 million – the lowest figure since July 2008 when net retail sales were -£22m.
For funds of funds invested with different asset management firms saw there was a net outflow of £5 million, compared to an inflow of £23 million for funds of funds invested into the same firm’s funds.
Funds under management for funds of funds were at £100.3 billion as at the end of January 2015, accounting for 11.7% of industry funds under management, compared with 11.3% in January 2014.
( Table 11)
Tracker funds saw net retail sales £348 million with funds under management of £96.5 billion as at the end of January 2015. Their overall share of industry funds under management was 11.3%, compared with 9.7% in January 2014.
( Table 12)
Net retail sales of ethical funds were £62 million in January 2015. Funds under management reached £10.0 billion at the end of January, representing a 1.2% share of industry funds under management.
( Table 12)
There was a net institutional outflow of £5,048 million in January 2015, the largest part due to some insurance monies transferring out of unit trust or OEIC structures.
OVERSEAS DOMICILED FUNDS
In January 2015, there were net retail sales of £189 million of overseas domiciled funds.
( Table 13)
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Notes for Editors
Below is a full list of tables and charts accompanying the press release:
The Investment Association's figures for fund sales cover retail and institutional sales of UK authorised unit trusts and open ended investment companies (OEICs). The figures do not include investment trusts and ETFs.
Each month small revisions to figures may have been made since the previous press release. This reflects additional information received by The Investment Association.
Net retail sales comprise total retail sales minus repurchases (including switches between funds), thus the figures can result in a negative figure or outflow.
* Regional breakdown for equity funds
The following Investment Association sectors have been grouped together to compile the figures for regional equity sales:
|Asia Pacific excl. Japan||Europe Excl. UK||Global||Japan||North America||UK All Companies|
|Asia Pacific incl. Japan||Europe Incl. UK||Global Emerging Markets||Japanese Smaller Companies||North America Smaller Companies||UK Equity Income|
|China/Greater China||Europe Smaller Companies||Global Equity Income||UK Smaller Companies|
|Technology and Telecommunications|
Direct includes sales forces and tied agents, private clients and other direct to investor sales without intermediation.
** The Investment Association’s ISA figures are based on information collected from fund companies and five fund platforms (Cofunds, Fidelity, Hargreaves Lansdown, Old Mutual Wealth and Transact) where they are the ISA provider. Fund business through other ISA providers such as wealth managers is not included. The Investment Association’s figures cover about three-quarters of the whole of the market for funds held in ISAs.
About the Investment Association:
+ Previously known as the Investment Management Association.