These maps really help illustrate the suprise factor of the credit crunch.. little of the previous patterns would prepare the UK investor for what was about to come. The flows show that investors did not recognise the risks inherent in 2006-2008. This is because conventional fund metrics were at best outputs not guides..!
2. Firms Index AUM Funds 9 5 2 8 3 1 6 Net Sales Movements 2002-2008 IMA – Drawdown Map Recent Estimated Net Sales Movements Number of Firms in the UK Onshore Market IMA by Assets under Management Number of Launches since Jan 2007 Market Saturation: AUM per Fund (£m) Number of Funds in the UK IMA Market 7 4 2008 IMA Universe, asset categories and sectors 10 IMA – Performance Map
3. Specialist Funds: Specialist, sector and new markets Growth Funds IMA Market: 3 universes, 5 Investment Types Immediate Income: Fixed Income Growing Income: Equity Income Unclassified Unauthorised Income Funds Capital Protection: Money Market, Guaranteed and Protected Funds Capital Growth & Total Return: Equity, Managed and Mixed Funds Index
4. IMA Market: 32 Sectors; *33 into 2009 Growth Funds Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Europe Inc. UK Asia Pac inc. Japan Japan Smaller Cos Europe Smaller Cos Pensions Absolute Return Technology & Telecoms Growing Income Protected/ G’teed UK MM Global Bonds UK Gilts UK Index Linked UK Zeros *UK High Yield *UK Strategic Active Managed Glbl Emerging Mkts North America Balanced Managed Japan Asia Pacific Ex Japan Specialist UK Equity Bond & Income UK Other Bond UK Eqty Income UK Corporate Bond UK Smaller Cos Europe ex UK UK All Companies Capital Protection Unclassified Unauthorised Specialist Funds Cautious Managed Global Growth Index
5. Specialist Funds Growth Funds (AUM at June 07) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Europe Inc. UK Asia Pac inc. Japan Japan Smaller Cos Europe Smaller Cos Unauthorised Pensions Absolute Return Technology & Telecoms Growing Income Protected/ G’teed UK MM Global Bonds UK Gilts UK Index Linked UK Zeros UK High Yield (tbc) UK Strategic (tbc) >20bn >50bn >5bn Small Mkt <5bn No Data >10bn Top Active Managed Cautious Managed Glbl Emerging Mkts North America Balanced Managed Japan Asia Pacific Ex Japan Global Growth Specialist UK Equity Bond & Income UK Other Bond UK Eqty Income UK Corporate Bond UK Smaller Cos Europe ex UK UK All Companies Unclassified Jun07 Index AUM Jun08 Capital Protection £34.1bn £54.55bn £27.38bn £21.08bn £105.9bn £33.58bn £22.76bn
6. Specialist Funds Growth Funds (AUM at June 08) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Japan Smaller Cos Europe Smaller Cos Unauthorised Pensions Technology & Telecoms Growing Income Protected/ G’teed UK MM UK Equity Bond & Income UK Index Linked UK Zeros >20bn >50bn >5bn Low Share <5bn No Data >10bn UK High Yield (tbc) UK Strategic (tbc) Top Absolute Return Active Managed Asia Pac inc. Japan Cautious Managed Europe Inc. UK Global Bonds Glbl Emerging Mkts Japan Asia Pacific Ex Japan Global Growth North America Balanced Managed Specialist UK Eqty Income UK Gilts UK Smaller Cos Europe ex UK UK All Companies Unclassified Jun08 Index AUM Capital Protection Jun07 £33.9bn 1y Chg -0.01% £87.21bn 1y Chg -0.18% £28.30bn 1y Chg 0.03% £44.95bn 1y Chg -0.18% £28.36bn 1y Chg -0.16% UK Other Bond UK Corporate Bond £20.37bn 1y Chg -0.03% £20.85bn 1y Chg -0.08%
7. Specialist Funds Growth Funds (# Funds at June 08) Income Funds Capital Growth & Total Return Immediate Income Unauthorised Growing Income UK MM UK Index Linked UK Zeros UK High Yield (tbc) UK Strategic (tbc) <25 <10 <75 No Data <50 <5 Cautious Managed Japan UK Other Bond UK Smaller Cos Unclassified >150 >100 >75 >200 Absolute Return Active Managed Asia Pacific Ex Japan Europe ex UK Global Bonds Glbl Emerging Mkts Asia Pac inc. Japan Global Growth Protected/ G’teed Japan Smaller Cos North America Europe Smaller Cos Europe Inc. UK Balanced Managed North America Smaller Cos Specialist Pensions Technology & Telecoms UK All Companies UK Corporate Bond UK Equity Bond & Income UK Eqty Income UK Gilts Index Firms Per Sector Funds Capital Protection 299 funds 104 funds 175 funds 179 funds 90 funds 94 funds 89 funds
8. Specialist Funds Growth Funds (# Firms at June 08) Income Funds Capital Growth & Total Return Immediate Income Unauthorised Growing Income UK MM UK High Yield (tbc) UK Strategic (tbc) <25 <10 <75 No Data <50 Specialist UK Other Bond UK Smaller Cos Unclassified <100 Asia Pacific Ex Japan Balanced Managed Cautious Managed Active Managed Europe ex UK Global Bonds Glbl Emerging Mkts Global Growth Japan Asia Pac inc. Japan Japan Smaller Cos North America Europe Smaller Cos Europe Inc. UK North America Smaller Cos Technology & Telecoms Pensions UK Eqty Income UK Corporate Bond UK Gilts UK Equity Bond & Income UK Index Linked UK Zeros >100 Index Funds Per sector Capital Protection Absolute Return UK All Companies Protected/ G’teed 69 firms 82 firms 63 firms 60 firms 41 firms 55 firms 95 firms
9. Specialist Funds Growth Funds (£m per Fund at June 08) Income Funds Capital Growth & Total Return Immediate Income Unauthorised Pensions Technology & Telecoms Growing Income Protected/ G’teed UK High Yield (tbc) UK Strategic (tbc) >200m >300m >50m No Data >100m >400m Cautious Managed UK Eqty Income UK Smaller Cos Saturated <50m:Fund Absolute Return Active Managed Asia Pac inc. Japan Balanced Managed Europe Inc. UK Europe Smaller Cos Global Bonds Global Growth Japan Japan Smaller Cos North America North America Smaller Cos Specialist UK Equity Bond & Income UK Index Linked UK Gilts UK MM UK Other Bond UK Corporate Bond UK Zeros Unclassified UK All Companies Europe ex UK Glbl Emerging Mkts Asia Pacific Ex Japan £m : Fund Index AUM Funds Per Sector Capital Protection £194m £499m £301m £234m £273m £292m £179m £306m £259m £242m £205m £208m
10. Specialist Funds Growth Funds (£m per Fund, Adjusted) Income Funds Capital Growth & Total Return Immediate Income Unauthorised Pensions Technology & Telecoms Growing Income Protected/ G’teed UK High Yield (tbc) UK Strategic (tbc) >150m >200m >50m No Data >100m Top Cautious Managed Low <50m:Fund Absolute Return Europe Inc. UK Global Bonds Japan Smaller Cos North America Smaller Cos Specialist UK Equity Bond & Income UK Index Linked UK Gilts UK MM UK Zeros Unclassified Europe ex UK Glbl Emerging Mkts Adjusted Index AUM Funds Per Sector Capital Protection £m : Fund Active Managed Asia Pacific Ex Japan Balanced Managed Asia Pac inc. Japan Europe Smaller Cos Global Growth Japan North America UK Other Bond UK Corporate Bond UK Smaller Cos UK All Companies UK Eqty Income £141m £214m £83m £205m £147m £119m £101m £151m £68m £95m £30m £79m £118m £130m £108m £106m
11. Specialist Funds Growth Funds (265 Launches Jan07-) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Asia Pac inc. Japan Japan Smaller Cos Unauthorised Pensions Technology & Telecoms Growing Income UK MM UK Gilts UK Index Linked UK Zeros UK High Yield (NEW) No Data Japan UK Equity Bond & Income UK Other Bond UK Eqty Income UK Corporate Bond UK Smaller Cos Unclassified <5 Recorded >15 >10 >20 <10 Hottest Launches Index AUM Funds Per Sector Capital Protection Absolute Return Active Managed Asia Pacific Ex Japan Balanced Managed Cautious Managed Europe Smaller Cos Europe Inc. UK Europe ex UK Global Bonds Glbl Emerging Mkts Global Growth Protected/ G’teed North America 73 launches since Jan07 (FERI). 33 According to Lipper (Hindsight) 25 launches since Jan 2007 15 launches since Jan 2007 32 launches since Jan 2007 13 launches since Jan 2007 UK Strategic (NEW) 25 launches since Jan 2007 Specialist 27 launches since Jan 2007 UK All Companies 22 launches since Jan 2007
12. Specialist Funds Growth Funds (2002 Estimated Net Sales) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Europe Inc. UK Asia Pac inc. Japan Japan Smaller Cos Europe ex UK Unclassified Unauthorised Pensions Absolute Return Technology & Telecoms Growing Income UK MM Global Bonds UK Equity Bond & Income UK Index Linked UK Zeros >500m >1bn <250m Low Activity 50m to -50m <-500m <-250m <-1bn No Data >250m >-250m UK High Yield (tbc) UK Strategic (tbc) Top Worst Asia Pacific Ex Japan Cautious Managed Balanced Managed Active Managed Europe Smaller Cos Protected/ G’teed Japan North America Specialist UK Eqty Income UK Gilts UK Other Bond UK Corporate Bond UK Smaller Cos UK All Companies Glbl Emerging Mkts Global Growth Capital Protection 2005 Index ENS 2007 2004 2003 2002 2006 -£450m £3.04bn £1.22bn £1.83bn £928m £716m £565m
13. Specialist Funds Growth Funds (2003 ENS) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Europe Inc. UK Japan Smaller Cos Unclassified Unauthorised Pensions Absolute Return Growing Income Protected/ G’teed UK Equity Bond & Income UK Index Linked UK Zeros >500m >1bn <250m Low Activity 50m to -50m <-500m <-250m <-1bn No Data >250m >-250m UK High Yield (tbc) UK Strategic (tbc) Active Managed Top Worst Asia Pac inc. Japan Balanced Managed Cautious Managed Europe Smaller Cos Global Bonds Global Growth Japan Asia Pacific Ex Japan North America UK Eqty Income UK Gilts UK MM UK Other Bond UK Corporate Bond UK Smaller Cos Europe ex UK UK All Companies Glbl Emerging Mkts Technology & Telecoms Specialist Capital Protection 2005 Index ENS 2007 2004 2003 2002 2006 -£428m -£693m £4.92bn £680m £1.24bn £1.12bn
14. Specialist Funds Growth Funds (2004 ENS) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Asia Pac inc. Japan Japan Smaller Cos Europe Smaller Cos Europe ex UK Unclassified Pensions Absolute Return Growing Income Protected/ G’teed UK MM UK Equity Bond & Income UK Index Linked UK Zeros >500m >1bn <250m Low Activity 50m to -50m <-500m <-250m <-1bn No Data >250m >-250m UK High Yield (tbc) UK Strategic (tbc) Unauthorised Active Managed Asia Pacific Ex Japan Europe Inc. UK Global Bonds Glbl Emerging Mkts Japan North America Balanced Managed Cautious Managed Technology & Telecoms Specialist UK Eqty Income UK Other Bond UK Corporate Bond UK Gilts UK Smaller Cos UK All Companies Top Worst Global Growth Capital Protection 2005 Index ENS 2007 2004 2003 2002 2006 -£807m £793m £572m £1.65bn £2.15bn £1.60bn £1.82bn
15. Specialist Funds Growth Funds (2005 ENS) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Europe Inc. UK Asia Pac inc. Japan Pensions Growing Income Protected/ G’teed UK MM UK Equity Bond & Income UK Index Linked UK Zeros >500m >1bn <250m Low Activity 50m to -50m <-500m <-250m <-1bn No Data >250m >-250m UK High Yield (tbc) UK Strategic (tbc) Unauthorised Absolute Return Active Managed Europe Smaller Cos Global Bonds Japan Global Growth North America Balanced Managed UK Eqty Income UK Gilts UK Other Bond UK Corporate Bond UK Smaller Cos Glbl Emerging Mkts Japan Smaller Cos UK All Companies Asia Pacific Ex Japan Unclassified Top Worst Europe ex UK Cautious Managed Capital Protection 2005 Index ENS 2007 2004 2003 2002 2006 £1.64bn £1.35bn £2.37bn £1.65bn £902m £2.10bn £3.21bn -£1.13bn Technology & Telecoms Specialist £2.63bn
16. Specialist Funds Growth Funds (2006 ENS) Income Funds Capital Growth & Total Return Immediate Income Active Managed North America Smaller Cos Asia Pac inc. Japan Japan Smaller Cos Glbl Emerging Mkts Pensions Technology & Telecoms Growing Income Protected/ G’teed UK MM UK Equity Bond & Income UK Index Linked UK Zeros >500m >1bn <250m Low Activity 50m to -50m <-500m <-250m <-1bn No Data >250m >-250m UK High Yield (tbc) UK Strategic (tbc) Unauthorised Absolute Return Asia Pacific Ex Japan Balanced Managed Europe Inc. UK Europe Smaller Cos Cautious Managed Global Bonds Global Growth Japan North America UK All Companies UK Eqty Income Europe ex UK UK Gilts UK Other Bond UK Corporate Bond Unclassified Top Worst Specialist UK Smaller Cos Capital Protection 2005 Index ENS 2007 2004 2003 2002 2006 £1.63bn £3.27bn 2005- -£515m -£686m £1.70bn £2.29bn £3.86bn £3.89bn £897m £1.12bn £1.67bn £5.43bn
17. Specialist Funds Growth Funds (2007 ENS) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Asia Pac inc. Japan Japan Smaller Cos Unclassified Pensions Growing Income UK Equity Bond & Income UK Index Linked UK Zeros >500m >1bn <250m Low Activity 50m to -50m <-500m <-250m <-1bn No Data >250m >-250m UK High Yield (tbc) UK Strategic (tbc) Active Managed Europe ex UK Europe Inc. UK Europe Smaller Cos Global Bonds Glbl Emerging Mkts Protected/ G’teed Japan Asia Pacific Ex Japan North America Balanced Managed Global Growth Technology & Telecoms Absolute Return Specialist UK Corporate Bond UK Eqty Income UK Smaller Cos UK All Companies UK Other Bond UK MM UK Gilts Unauthorised Top Worst Cautious Managed 2005 Index ENS 2007 2004 2003 2002 2006 Capital Protection £1.97bn £5.24bn 2005- £1.61bn £341m £3.73bn £825m £1.11bn £4.37bn £1.28bn -£747m £3.24bn
18. Specialist Funds Growth Funds (2002-2007 ENS) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Asia Pac inc. Japan Japan Smaller Cos Unclassified Pensions Growing Income UK Equity Bond & Income UK Index Linked UK Zeros >5bn >10bn >500m Low Activity 500m to -500m <-2bn <-1bn <-4bn No Data 1-5bn >-500m UK High Yield (tbc) UK Strategic (tbc) Active Managed Europe Inc. UK Europe Smaller Cos Japan Technology & Telecoms UK Smaller Cos UK All Companies UK MM UK Gilts Unauthorised Top Worst 2005 Index ENS 2002-2007 2004 2003 2002 2006 Capital Protection Asia Pacific Ex Japan Balanced Managed Cautious Managed Europe ex UK 2007 Global Bonds Glbl Emerging Mkts Global Growth Protected/ G’teed North America Absolute Return Specialist UK Eqty Income UK Other Bond UK Corporate Bond £4.67bn £15.4bn £14.5bn £15.3bn £7.59bn £14.5bn -£3.71bn -£2.39bn
19. Specialist Funds Growth Funds (1y ENS to June 08) Income Funds Capital Growth & Total Return Immediate Income North America Smaller Cos Asia Pac inc. Japan UK Smaller Cos Unclassified Unauthorised Pensions Growing Income UK Equity Bond & Income UK Index Linked UK Zeros >500m >1bn <250m Low Activity 50m to -50m <-500m <-250m <-1bn No Data >250m >-250m Active Managed Balanced Managed Europe Inc. UK Europe ex UK Europe Smaller Cos Protected/ G’teed Japan Japan Smaller Cos Glbl Emerging Mkts UK High Yield (tbc) UK Strategic (tbc) Technology & Telecoms Specialist Absolute Return UK Gilts UK MM Asia Pacific Ex Japan Global Growth UK Eqty Income Global Bonds UK Other Bond UK Corporate Bond North America Top Worst Cautious Managed UK All Companies 1 Year Index ENS Capital Protection £2.34bn -£4.56bn
20. Specialist Funds Growth Funds (YTD ENS to June 08) Income Funds Capital Growth & Total Return Immediate Income Active Managed North America Smaller Cos Europe Inc. UK Asia Pac inc. Japan Japan Smaller Cos Unclassified Unauthorised Pensions Growing Income UK MM UK Equity Bond & Income UK Index Linked UK Zeros >500m >1bn <250m Low Activity 50m to -50m <-500m <-250m <-1bn No Data >250m >-250m Asia Pacific Ex Japan Europe Smaller Cos Global Bonds Protected/ G’teed Japan North America Balanced Managed Technology & Telecoms Specialist UK Eqty Income UK Gilts UK Smaller Cos Glbl Emerging Mkts UK Other Bond UK High Yield (tbc) UK Strategic (tbc) Absolute Return Europe ex UK Cautious Managed Global Growth Top Worst UK All Companies UK Corporate Bond YTD Index ENS Capital Protection £1.11bn -£3.17bn
21. Specialist Funds Growth Funds (Latest Qtr ENS to Jun08) Income Funds Capital Growth & Total Return Immediate Income UK Strategic (tbc) Active Managed North America Smaller Cos Asia Pac inc. Japan Japan Smaller Cos Unclassified Unauthorised Pensions Technology & Telecoms Growing Income UK MM UK Index Linked UK Zeros UK High Yield (tbc) >500m >1bn <250m Low Activity 50m to -50m <-500m <-250m <-1bn No Data >250m >-250m Absolute Return Asia Pacific Ex Japan £ Europe ex UK Europe Inc. UK Global Growth Protected/ G’teed Japan Europe Smaller Cos North America Balanced Managed Cautious Managed Specialist UK Smaller Cos Glbl Emerging Mkts UK Equity Bond & Income Global Bonds UK Eqty Income UK Gilts UK Other Bond UK Corporate Bond Top Worst UK All Companies Quarter Index ENS Capital Protection £828m -£1.59bn
22. Growth Funds IMA Market: Performance Trend (3y TR) August 2008 Income Funds Capital Growth & Total Return Immediate Income Technology & Telecoms Growing Income UK MM Global Bonds UK Gilts UK Zeros *UK High Yield *UK Strategic North America Japan UK Equity Bond & Income UK Other Bond UK Eqty Income UK Corporate Bond UK Smaller Cos UK All Companies Capital Protection Unclassified Unauthorised Specialist Funds >30% >50% >10% Moderate Perf 10% to -10% <-30% <-20% <-50% No Data >20% >-10% TR Top Worst Absolute Return Cautious Managed Asia Pac inc. Japan Balanced Managed Europe Inc. UK Europe ex UK Europe Smaller Cos Global Growth Protected/ G’teed Active Managed Japan Smaller Cos North America Smaller Cos Pensions Specialist UK Index Linked Asia Pacific Ex Japan Glbl Emerging Mkts Index
23. Growth Funds IMA Market: Risk Adjusted Trend (TR/STDEV 3y) Aug2008 Income Funds Capital Growth & Total Return Immediate Income Technology & Telecoms Growing Income Specialist UK Other Bond UK Corporate Bond UK Smaller Cos Europe ex UK UK All Companies Capital Protection Unclassified Unauthorised Specialist Funds Global Growth Absolute Return Balanced Managed Cautious Managed Europe Inc. UK Europe Smaller Cos Protected/ G’teed UK MM North America North America Smaller Cos UK Eqty Income UK Equity Bond & Income UK Gilts UK Zeros *UK High Yield Global Bonds *UK Strategic >1 >2.5 <0.5 <0.1 <0.2 <-0 No Data <1 <0.3 Return/Risk Top Worst Active Managed Asia Pac inc. Japan Japan Pensions UK Index Linked Glbl Emerging Mkts Asia Pacific Ex Japan Japan Smaller Cos Index
24. Growth Funds IMA Market: Max Drawdown Trends (3mo in 3y) Aug 2008 Income Funds Capital Growth & Total Return Immediate Income Pensions Technology & Telecoms Growing Income UK Index Linked Specialist UK Other Bond UK Corporate Bond UK Smaller Cos Europe ex UK UK All Companies Capital Protection Unclassified Unauthorised Specialist Funds Global Growth >1 >2.5 >0.4 >0.1 >0.2 <-0 No Data >0.5 >0.3 Return/Risk Top Worst Absolute Return Active Managed Asia Pacific Ex Japan Asia Pac inc. Japan Balanced Managed Cautious Managed Europe Inc. UK Europe Smaller Cos Glbl Emerging Mkts Protected/ G’teed Japan Japan Smaller Cos UK MM North America North America Smaller Cos UK Eqty Income UK Equity Bond & Income UK Gilts UK Zeros *UK High Yield Global Bonds *UK Strategic Index