Investment funds under management rise in February

Investment funds under management of £448 billion in February saw a rise of less than one percent from January but were 21% higher than February 2006. ISA funds under management of £52 billion also rose less than one percent, but were 10% higher than the previous year.

ISA sales

Net ISA sales of £88 million in February were almost three times higher than those seen in January but were down 40% from February 2006. The most popular ISA sector in February was UK All Companies, accounting for 25% of gross ISA sales.

Net sales by asset class

Total net sales were £973 million with equities accounting for inflows of £806 million. Of the £973million net retail sales, £761 million was invested in equities, followed by £168 million in balanced funds.

Gross retail sales by sector and distribution channel

The most popular sector in February 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 February was intermediaries representing 81% of gross retail business. Gross ISA sales of £279 million from fund supermarkets made them the dominant distributor of ISAs, followed by £200 million of sales through sales force/tied agents.

Best selling sector

The Specialistsectorremained the most popular net retail sector in February with inflows of £384 million, of which £408 million was in property funds. The sector with the biggest outflows in February was the UK Corporate Bond sector with net outflows of £203million.

Richard Saunders, Chief Executive of the IMA commented: " Despite market volatility, retail sales continued to be strong with net inflows almost reaching £1 billion. ISA sales, however, continued to be lower than 2006 with February signalling a modest start to the ISA season last month. It is to be hoped that the welcome announcement in the Budget that contribution limits are to increase, together with the overhaul of the system, will go some way to restoring confidence in the ISA, which remains an excellent product."