Investment fund data shows sales increase in three sectors
Investment fund data shows sales increase in three sectors
10 November 2010 / by Paul Dicken
Funds of funds have posted their highest ever level of sales, according to industry data, as tracker funds and ethical funds also showed increase in assets under management.
Publishing data for the three sectors on 10 November, the Investment Management Association said investors continued to show an appetite for funds of funds – where a fund has holdings in other managed funds – with a 31 per cent increase in funds under management.
The total being managed in funds of funds is now £52billion, with tracker funds increasing by 15 per cent to £30.4million and ethical funds seeing a 12 per cent increase in the money they manage during the third quarter of 2010 compared to 2009.
Chief executive of the IMA, Richard Saunders, said: “Investors continue to show an appetite for funds of funds, adding a record £5.1billion so far this year. At the end of September, funds of funds accounted for nearly 10 per cent of total funds under management, also a record high.
“Tracker funds are also increasingly popular, with year to date net retail sales of £599million, the highest level since 2002.”
Tracker funds, also referred to as passive funds, aim to track particular indices.
With £6.1billion under management at the end of September, Saunders said ethical funds formed a modest proportion of total sales but recorded £74million in net retail sales for the third quarter of 2010.
At a parliamentary reception for National Ethical Investment Week on 9 November, the UK Sustainable Investment Forum (UKSIF) called on the government to introduce a Green ISA allowance in next year’s Budget.
Research carried out by YouGov showed 27 per cent of adults would invest in a Green ISA, while over half of existing investors would consider investing in renewable energy to help the sector receive greater funding.
UKSIF chief executive Penny Shepherd said over the next 15 years the gap in energy investment could be up to £400billion and more should be done to tap into consumer interest in green energy to help fill that gap.
Big increase in funds under management at Schroders
On 9 November, the asset manager Schroders announced net inflows to its business of £21.5billion in the nine months to 30 September 2010, up from £8.7billion in the same period in 2009. The firm said 79 per cent of the inflows were from clients outside of the UK.
This puts the total funds under management at a record £181.5billion and boosted the company’s share price during trading on 9 November.
© Fair Investment Company Ltd
| Product Name | ISA Option | Income Yield | More Info | |
|---|---|---|---|---|
 |
Henderson Strategic Bond |  |
5.7% | More Info > |
| Income Paid Quarterly. Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. See latest fund factsheet for details. | ||||
 |
Newton Asian Income | |
5.43% | More Info > |
| Income Paid Quarterly.The objective of the Sub-Fund is to achieve income together with long-term capital growth predominantly through investments in securities in Asia Pacific ex Japan (including Australia & New Zealand) region. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details. | ||||
|
Newton Higher Income | |
5.4% | More Info > |
| Income Paid Quarterly. The objective of the Fund is to achieve increasing distributions on a calendar year basis with long term capital growth. The Fund may also invest in collective investment schemes. See latest fund factsheet for details. | ||||
 |
Invesco Perpetual Distribution | |
4.7% | More Info > |
| Income Paid Monthly. Invesco Perpetual Distribution offers a balance between both income and capital growth through investment in UK based equities and fixed interest securities. See latest fund factsheet for details. | ||||
|
Invesco Perpetual Monthly Income Plus | |
4.46% | More Info > |
| Income Paid Monthly. Popular income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. See latest fund factsheet for details. | ||||
 |
Woodford Equity Income Fund | |
3.50% | More Info > |
| Our selected partner for investing in Neil Woodford’s Equity Income fund is Barclays Stockbrokers, via their INVESTMENT ISA for new ISAs and ISA transfers, or their MARKETMASTER® ACCOUNT for non-ISA investments. Income Paid Quarterly.The fund’s investment objective is to provide investors with long-term appreciation through investing in stocks primarily listed on the UK stock exchanges. Up to 20% may be invested in international companies. The income objective is 10% higher than the FTSE All Share Index yield with an anticipated annual yield of 4.0%. | ||||
|
Newton Global Higher Income | |
4.7% | More Info > |
| Income Paid Quarterly. The objective of the Sub-Fund is to achieve increasing annual distributions together with long-term capital growth from investing predominantly in global securities. The Sub-Fund may also invest in collective investment schemes. See latest fund factsheet for details. | ||||
 |
Jupiter Merlin Income Portfolio | |
3.10% | More Info > |
| Income Paid Quarterly. To achieve a high and rising income with some potential for capital growth by investing predominantly in unit trusts, OEICs, Exchange Traded Funds and other collective investment schemes across several management groups. The underlying funds invest in equities, fixed interest stocks, commodities and property, principally in the UK. See latest fund factsheet for details. | ||||
 |
M&G; Global Dividend | |
3.27% | More Info > |
| Income Paid Quarterly. The Fund aims to deliver a dividend yield above the market average, by investing mainly in a range of global equities. The Fund aims to grow distributions over the long-term whilst also maximising total return (the combination of income and growth of capital). See latest fund factsheet for details. | ||||
 |
Kames Strategic Bond | |
2.95% | More Info > |
| The primary investment objective is to maximise total return (income plus capital ) by investing in global debt instruments,denominated in any currency, ranging from AAA Government Bonds through to high yield and emerging market corporate bonds. At least 50% of the fund will be invested in sterling and other currency denominated bonds hedged back to sterling. See latest fund factsheet for details. | ||||
|
M&G; Optimal Income | |
2.44% | More Info > |
| Income Paid Twice Yearly.The fund aims to provide a total return to investors based on exposure to optimal income streams in investment markets. The fund invests across a broad range of fixed income assets according to where the fund manager identifies value. See latest fund factsheet for details. | ||||
**Historic Yield reflects distributions declared over the past 12 months as a percentage of the mid-market price of the fund.
*** This is the target yield the fund aims to achieve per year, it is not guaranteed and could change according to prevailing market conditions. The target yield is net of basic rate tax.
Information correct as at 08/02/2012.
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