UK savers put £1.1 billion into funds in November 2023, according to data published by the Investment Association (IA), as Equity, Fixed Income and Mixed Asset funds turned positive. However, this was primarily driven by Tracker fund sales.
Key findings for November 2023:
- Tracker funds saw inflows of £2.7 billion the highest inflow since April 2021.
- Equity funds experienced strong inflows of £991 million, an increase from October’s £488 outflows.
- Fixed Income and Mixed Asset funds were in inflows of £366 million and £414 million, respectively.
- Mixed Investment 20-60% Shares was the worst-selling sector, experiencing £575 million in outflows, while UK Gilts was the best-selling sector with a £548 million inflow.
- Responsible Investment funds remained in the red, with outflows of £459 million, down from last month’s £544 million outflow.
Chris Cummings, Chief Executive of the Investment Association, said:
“In November 2023, we saw savers return to put money into funds, as most asset classes bounced back after a challenging third quarter of the year. With inflation easing, there is a glimmer of hope on the horizon that we may see less restrictive monetary policy and cuts in Central Bank rates in 2024. The latest flow data suggests this has boosted both consumer confidence and wider market sentiment.”
FUNDS UNDER MANAGEMENT AND NET SALES
| Funds Under Management | Net Retail Sales | Net Institutional Sales | |
| November 2023 | £1.39 trillion | £1.1 billion | -£5.4 billion |
| November 2022 | £1.39 trillion | £457 million | -£5.8 billion |
BEST SELLING INVESTMENT ASSOCIATION SECTORS
The five best-selling Investment Association sectors for November 2023 were:
- UK Gilts with net retail sales of £548 million.
- Infrastructure with net retail sales of £241 million.
- High Yield Bond followed with net retail sales of £190 million.
- Volatility Managed with net retail sales of £165 million.
- North America was fifth with net retail sales of £133 million.
The worst-selling Investment Association sector in November 2023 was Mixed Investment 20-60% Shares, which experienced outflows of £575 million.
NET RETAIL SALES BY ASSET CLASS
Equity funds saw inflows of £991 million.
Mixed Asset funds saw inflows of £414 million.
Fixed Income funds saw inflows of £366 million.
Property funds experienced £47 million in outflows.
Other funds saw £291 million in outflows.
Money Market saw outflows of £319 million.
NET RETAIL SALES OF EQUITY FUNDS BY REGION*
North America funds saw inflows of £115 million.
Japan funds experienced inflows of £47 million.
Asia funds saw net retail outflows of £37 million.
Europe funds saw outflows of £305 million.
Global funds saw net retail outflows of £314 million.
UK funds saw outflows of £819 million.
TRACKER FUNDS
Tracker funds saw net retail inflows of £2.7 billion in November 2023. Tracker funds under management stood at £309 billion at the end of November. Their overall share of industry funds under management was 22.2%.
RESPONSIBLE INVESTMENT FUNDS
Responsible investment funds saw a net retail outflow of £459 million in November 2023. Responsible investment funds under management stood at £98 billion at the end of November. Their overall share of industry funds under management was 7.0%.
GROSS RETAIL SALES BY DISTRIBUTION CHANNEL
Gross retail sales for UK fund platforms totalled £13.3 billion, representing a market share of 45.5%.
Gross retail sales through other UK Intermediaries including IFAs totalled £10.2 billion, representing a market share of 34.7%.
Gross retail sales for Discretionary Manager totalled £1.4 billion, representing a market share of 4.9%.
Direct gross retail sales totalled £962 million, representing a market share of 3.3%.
In November, Execution only intermediaries totalled £87 million in gross retail sales and accounted for 0.3% of the market.
