UK ethical fund sales highest since 2007, beat total market for the year.

Positive flows ahead of UK National Ethical Investment Week.

Sales of UK ethical funds hit their highest quarterly amount since the fourth quarter of 2007 with net retail sales of £94m in the second quarter of 2011, according to the latest data from the UK Investment Management Association (IMA). The rise suggests that ethical funds have remained resistant and may even have benefitted from the financial crisis. The quarterly sales rise was part of overall asset growth for ethical funds over the last year that has slightly pipped that of the total funds market. By the end of the second quarter of 2011 UK ethical funds had reached total assets under management of £7.1 bn, up £1.3 billion on their asset level a year earlier (23% rise). The level of ‘all funds’ in the UK market rose by 22% over the year to reach £601bn.The UK ethical funds sector counts 54 funds and represents1.2% of total UK fund assets.
The ethical fund sales levels also bode well for the UK’s National Ethical Investment Week, which takes place from 16-22 October. Lisa Wootton, UKSIF project manager of National Ethical Investment Week, said:
“These IMA net sales figures are a positive signal that interest in green and ethical options continues to grow. It’s encouraging to see the highest quarterly sales of ethical funds since before the 2008 financial crisis.
Richard Saunders, Chief Executive at the IMA, comments: “Sales of ethical funds in Quarter 2 2011 were the highest since late 2007, though they still represent a modest proportion of total sales.”