Standard Life Investments (SLI) shrugged off the turmoil affecting financial markets to post record sales of mutual funds to retail investors in the third quarter.

Standard Life Investments (SLI) shrugged off the turmoil affecting financial markets to post record sales of mutual funds to retail investors in the third quarter.

The fund management arm of the life and pensions giant said it had recorded the highest third-quarter sales since it was founded in 1998, with gross inflows of £510m, up 56% on the same period last year. Net of withdrawals, funds inflows increased by 22% in the quarter compared with last year, to £288m, against the backdrop of a difficult market.

"While the third quarter of 2007 has seen a marked slowdown in retail fund gross inflows across the industry, it is hugely rewarding to see that our mutual fund sales are the highest ever for this period," said Jacqueline Kerr, head of mutual fund investments at SLI.

Top-selling funds included the Select Property, UK Equity High Income and UK Smaller Companies offerings.

The latest success follows a good first half for the retail operation. Over the nine-month period to September 30, gross inflows increased 66% on last year, to £2.011bn. Net funds inflows increased by 52% to £1.4bn.

In September, the division revealed that third-party funds, as opposed to assets run for its parent, rose by nearly 20%, or £7.6bn, to £46.1bn during the six months to June 30.