Funds under management fall in June
Funds under management of UK domiciled investment funds were £463 billion in June, a fall of 1.6% from May but were 25% higher than June 2006, according to the Investment Management Association (IMA). UK domiciled ISA funds under management of £55 billion were down 1.8% from the previous month and 15% higher than the previous year.ISA sales
Net sales of UK domiciled investment fund ISAs were £109 million in June, 20% less than May and down 43% from June 2006.
The most popular UK domiciled ISA sector in June was UK All Companies, accounting for 26% of gross ISA sales. In net terms the most popular ISA sector was Cautious Managed.
UK domiciled net sales by asset class
Total net sales of UK domiciled funds were £834 million in June with Money Market funds accounting for inflows of £423 million. Of the £767 million net retail sales £408 million was invested in equities, followed by £184 million in balanced funds.
Gross retail sales by sector and distribution channel
The most popular sector in June was UK All Companies, representing 18% of gross retail sales of UK domiciled funds. The sector was favoured by intermediaries and accounted for 17% of gross retail business through this channel.
The most popular distribution channel for UK domiciled funds in June was the intermediary channel representing 87% of gross retail business. Gross ISA sales of £320 million from fund supermarkets made them the dominant distributor of ISAs, followed by £180 million through sales force/tied agents.
Best selling sector for UK domiciled funds
The Specialist sector remained the most popular UK domiciled net retail sector with inflows of £369 million, of which £303 million was through property funds. The sector with the biggest outflows in June was UK All Companies with net outflows of £154 million.
Overseas funds
Overseas funds under management of £16 billion in June saw a 1.8% increase from the previous month, while overseas ISA assets of £259 billion fell 1.9% from May.
Total net sales of overseas domiciled funds reached £271 million in June, an increase of 36% from the previous month. Overseas funds also saw net retail inflows of £125 million in June, a four-fold increase from May.
Net sales of overseas domiciled investment fund ISAs saw outflows of £0.1 million in June, compared to outflows of £1.2 million in May.
Summary of overseas domiciled funds - FUM and sales
Richard Saunders, Chief Executive of the IMA commented: "June was a slightly slower month for retail investment, but sales in the second quarter of 2007 overall held up well. Investment in ISAs continues to be at a modest level, which is puzzling given the buoyancy of industry sales in the last two years. It is to be hoped that the recently published reforms to ISAs from next April will help to revitalise the product."