Investment funds under management rise in October

Investment funds under management of £398 billion in October saw a rise of 3% from September and were 25% higher than October 2005. ISA funds under management reached a high of £50 billion in October, rising 2% from the previous month and 18% on the previous year.

ISA sales

Net ISA sales of £83 million in October were 71% higher than September but were down 5% from October 2005. The most popular ISA sector in October was UK All Companies, accounting for 23% of gross ISA sales.

Net sales by asset class

Total net sales were £1.4 billion with equities accounting for inflows of £937 million. Of the £1.6 billion net retail sales £1.1 billion was invested in equities, of which £379 million was via property funds, followed by £254 million in bonds.

Gross retail sales by sector and distribution channel

The most popular sector in October was UK All Companies, representing 23% of gross retail sales. The sector was favoured by intermediaries and accounted for 23% of gross retail business through this channel.

The most popular distribution channel in October was the intermediary channel representing 87% of gross retail business. Gross ISA sales of £277 million from fund supermarkets made them the dominant distributor of ISAs, followed by £189 million through sales force/tied agents.

Best selling sector

The Specialist sectorremained the most popular net retail sector in October with inflows of £519 million, of which £379 million was invested in the property funds in this sector. The sector with the biggest outflows in October was the Global Growth sector with net outflows of £136million.

Richard Saunders, Chief Executive of the IMA commented:" For the second consecutive month net retail sales into investment funds have seen record monthly highs, with over £1.6 billion setting a new high for October inflows. This was more than £1 billion higher than the same month in 2005. Business through intermediaries also saw record inflows, accounting for 86% of gross retail business. All in all, we believe this reflects the growing importance in the market of fund supermarkets and other platforms."