F&C reports record year for UK retail funds business

New business figures released by F&C to the London Stock Exchange today revealed that 2007 was a record year for sales of its open-ended investment funds to UK retail investors.

The group notched up gross new inflows of £703 million into its OEIC range, a 37.3% increase on 2006 which had previously been the best year ever for F&C.

"Net sales, which take account of redemptions, were also exceptionally strong," said Nick Criticos, Head of Retail at F&C, "as these rose by more than 27% against a backdrop when industry net sales of UK domiciled retail funds actually declined by around a third over the previous year."

Criticos points to the consistency of inflows as signs of strong momentum in the business, with gross inflows of £180 million and net inflows of £94 million in Q4 2007, a period when the industry as a whole posted net redemptions during November and December as investors reacted to market turmoil.

"Pleasingly we have not been reliant on any one product," explained Criticos, "but have seen strong growth across our multi-manager range, our market leading ethical funds, our corporate bond range, the F&C UK Growth & Income Fund and our high performing Asian products."

During 2008 F&C expects 'more of the same' as key distribution deals on its Lifestyle range of multi-manager funds kick-in and it's F&C UK Growth & Income Fund reaches its third anniversary under the tenure of top fund manager, Ted Scott. Additionally, Criticos believes that stellar performance from its restructured emerging equities desk and continued strong performance on its Pacific Growth Fund will also drive sales.

"We also believe that given the recent market turmoil and increased appetite for risk aversion this will raise interest in funds such as F&C High Income, which has an investment objective to yield 2% more than interest rates, as well as the F&C BLUE Fund. This latter fund, which has frankly been long overlooked by the market, is an ultra-cautious vehicle which delivers its return in the form of capital. Given the new capital gains tax regime which will create distinct tax advantages in favour of capital distributions rather than interest or dividends, this fund deserves to garner increased interest," he said.