A positive first half of the year with £6 billion invested into funds
FOR IMMEDIATE RELEASE
3 August 2023
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June saw a net retail outflow of £986 million - the first monthly outflow this year.
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In June, North American equity funds experienced a £657 million outflow despite improved performance in the US market. This impacted on sales to tracker funds which dipped to £272 million inflows.
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Japan equity funds saw £227 million invested in June, the only equity region with inflows.
Chris Cummings, Chief Executive of the Investment Association, said:
“We have seen a positive first half of the year, with retail investors putting just over £6 billion into funds, with the majority of this flowing into fixed income funds.
“June, however, has proved to be both a politically and economically challenging month. With the resignation of three Conservative MPs triggering byelections and stickier than expected inflation in the UK, it can be of little surprise that investors have remained cautious. Combined with the pressure on the cost of living and acceleration of monetary policy tightening, investors withdrew just under £1 billion from funds in June. On the positive side, there were record inflows into UK Gilts and modest inflows to Government Bonds, following the Bank of England's rate rises."
FUNDS UNDER MANAGEMENT AND NET SALES
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Funds Under Management |
Net Retail Sales |
Net Institutional Sales |
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June 2023 |
£1.40 trillion |
-£986 million |
-£3.57 billion |
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June 2022 |
£1.38 trillion |
-£4.40 billion |
-£2.42 billion |
BEST SELLING INVESTMENT ASSOCIATION SECTORS
The five best-selling Investment Association sectors for June 2023 were:
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UK Gilts with net retail sales of £504 million.
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Volatility Managed with net retail sales of £316 million.
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Specialist Bond followed with net retail sales of £238 million.
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Japan with net retail sales of £215 million.
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Government Bond was fifth with net retail sales of £173 million.
The worst-selling Investment Association sector in June 2023 was North America, which experienced outflows of £618 million.
NET RETAIL SALES BY ASSET CLASS
Mixed Asset funds saw inflows of £523 million.
Fixed Income funds saw inflows of £126 million.
Funds in Others saw £46 million in outflows.
Property funds experienced £144 million in outflows.
Money Market saw outflows of £174 million.
Equity funds saw outflows of £1.3 billion.
NET RETAIL SALES OF EQUITY FUNDS BY REGION*
Global funds saw net retail outflows of £417 million.
Asia funds saw net retail outflows of £29 million.
Europe funds saw outflows of £104 million.
Japan funds experienced inflows of £227 million.
North America funds saw outflows of £657 million.
UK funds saw outflows of £858 million.
TRACKER FUNDS
Tracker funds saw net retail inflows of £272 million in June 2023. Tracker funds under management stood at £295 billion at the end of June. Their overall share of industry funds under management was 21.1%.
RESPONSIBLE INVESTMENT FUNDS
Responsible investment funds saw a net retail outflow of £432 million in June 2023. Responsible investment funds under management stood at £97 billion at the end of June. Their overall share of industry funds under management was 6.9%.
GROSS RETAIL SALES BY DISTRIBUTION CHANNEL
Gross retail sales for UK fund platforms totalled £13.8 billion, representing a market share of 45.3%.
Gross retail sales through other UK Intermediaries including IFAs totalled £10.8 billion, representing a market share of 35.6%.
Gross retail sales for Discretionary Manager totalled £1.8 billion, representing a market share of 5.8%.
Direct gross retail sales totalled £1.2 billion, representing a market share of 3.8%.
In June, Execution only intermediaries totalled £86 million in gross retail sales and accounted for 0.3% of the market.
ENDS
For further information, please contact:
Helen Ayres, Head of Communications: [email protected]
T: +44 (0)20 7269 4625
IA press office: [email protected]
Notes for Editors
To see a breakdown of the fund data referenced in this press release, please see all of the tables here.
The Investment Association's figures for fund sales cover retail and institutional sales in authorised unit trusts and open-ended investment companies (OEICs) provided by our membership to UK investors. The figures do not include investment trusts and ETFs.
Each month small revisions to figures have been made since the previous press release. This reflects additional information received by The Investment Association.
Net retail sales comprise total retail sales minus repurchases (including switches between funds), thus the figures can result in a negative figure or outflow.
* Regional breakdown for equity funds
The following Investment Association sectors have been grouped together to compile the figures for regional equity sales:
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Asia |
Europe |
Global |
Japan |
North America |
UK |
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Asia Pacific excl. Japan |
Europe excl. UK |
Global |
Japan |
North America |
UK All Companies |
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Asia Pacific incl. Japan |
Europe incl. UK |
Global Emerging Markets |
Japanese Smaller Companies |
North America Smaller Companies |
UK Equity Income |
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China/Greater China |
Europe Smaller Companies |
Global Equity Income |
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UK Smaller Companies |
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India/Indian Subcontinent |
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Specialist |
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Healthcare |
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Technology and Technology innovation |
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Financials and Financial innovation |
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Direct Channels
Direct includes sales forces and tied agents, private clients and other direct to investor sales without intermediation.
** The Investment Association’s ISA figures are based on information collected from fund companies and five fund platforms (AEGON, Fidelity, Hargreaves Lansdown, Quilter, and Transact) where they are the ISA provider. Fund business through other ISA providers such as wealth managers is not included. The Investment Association’s figures cover about three-quarters of the whole of the market for funds held in ISAs.
About the Investment Association (IA):
The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £10.0 trillion of assets and the investment management industry supports 122,000 jobs across the UK.
Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
Our purpose is to ensure investment managers are in the best possible position to:
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Build people’s resilience to financial adversity
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Help people achieve their financial aspirations
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Enable people to maintain a decent standard of living as they grow older
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Contribute to economic growth through the efficient allocation of capital.
The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
The UK is the second largest investment management centre in the world, after the US and manages over a third (37%) of all assets managed in Europe.
