Investment funds under management rise in January

Investment funds under management of £411 billion in January saw a small rise from December and were 15% higher than January 2006, according to the Investment Management Association (IMA). ISA funds under management of £51 billion, however, saw a marginal fall in January, but were 11% higher than the previous year.

ISA sales

Net ISA sales of £31 million in January were 71% lower than December and were down 62% from January 2006. The most popular ISA sector in January was UK All Companies, accounting for 28% of gross ISA sales.

Net sales by asset class

Total net sales were £732 million, with bonds accounting for inflows of £345 million. Of the £893 million net retail sales, £576 million was invested in equities, of which £392 million was via property funds, followed by £116 million in balanced funds.

Gross retail sales by sector and distribution channel

The most popular sector in January was UK All Companies, representing 18% of gross retail sales. The sector was favoured by intermediaries and accounted for 17% of gross retail business through this channel.

The most popular distribution channel in January was the intermediary channel representing 83% of gross retail business. Gross ISA sales of £234 million from fund supermarkets made them the dominant distributor of ISAs, followed by £169 million through sales force/tied agents.

Best selling sector

The Specialist sector remained the most popular net retail sector for the thirteenth consecutive month with inflows of £351 million. Property funds in this sector accounted for net retail sales of £392 million in January. The sector with the biggest outflows in January was Europe excluding UK with net outflows of £144 million.

Richard Saunders, Chief Executive of the IMA commented: "2007 opened with a relatively quiet month by recent standards, but net inflows from retail investors were still very healthy at just under £900 million. Once again ISA distribution continued to be dominated by fund supermarkets and it will be interesting to see how this develops during the 2007 ISA season."