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Net retail sales of £320 million in January 2015

Thursday 26 February 2015

The Investment Association today publishes its statistics for authorised investment funds for January 2015:

  • Net retail sales were £320 million in January 2015 compared to £1.7 billion in December 2014
  • UK Equity Income was the best-selling Investment Association sector for the eighth consecutive month with net retail sales of £280 million
  • Property was the best-selling asset class with net retail sales of £235 million

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

(Table 3 and Chart A)

ASSETS

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.

(Table 4 and Chart B)

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.

Region 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:

  • 1.UK Equity Income with net retail sales of £280 million. This sector has been the best-selling for eight consecutive months.
  • 2. Property with net retail sales of £235 million.
  • 3. Global with net retail sales of £206 million.
  • 4. £ Corporate Bond with net retail sales of £192 million. This is the first it has been in the top five selling sectors since August 2012.
  • 5. Global Equity Income with net retail sales of £123 million.

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 Ranking in
January 2015
Net Retail Sales
in January 2015
Ranking in
December 2014
Asset Class
UK Equity Income 1 £280 million 1 Equity
Property 2 £235 million 2 Property
Global 3 £206 million 8 Equity
£ Corporate Bond 4 £192 million 10 Fixed Income
Global Equity Income 5 £123 million 7 Equity

( Tables 5,6,7)

RETAIL DISTRIBUTION

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)

ISAs**

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:

  • 1. UK Equity Income (£63 million net sales)
  • 2. Property (£26 million net sales)
  • 3. North America (£12 million net sales)

( 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

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)

ETHICAL FUNDS

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)

INSTITUTIONAL SALES

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)

-ENDS-

For further information, please contact:

Navdeep Sidhu
Media Relations Manager
Navdeep.Sidhu@theinvestmentassociation.org
T +44 (0)20 7269 4663
M +44 (0)07843 517 618

Alex Hogan
Press & Digital Media Officer
Alex.Hogan@theinvestmentassociation.org
T +44 (0)20 7269 4620
M +44 (0)7508 724 066

Notes for Editors

Below is a full list of tables and charts accompanying the press release:

All tables

Charts

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 Europe Global Japan North America UK
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
Specialist
Technology and Telecommunications

Direct Channels

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.

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