Fund sales topped £1 billion in July with inflows to equity, mixed asset and corporate bond funds – The Investment Association

by | Sep 7, 2023

Share this article

As inflation starts to fall and the growth outlook has slightly improved, UK investor allocations to equities turned markedly positive in July, according to data published today by the Investment Association (IA).   

Key findings for July 2023: 

  • Net retail sales topped £1 billion in July, with Equity funds returning to inflows with £816 million invested.  
  • Mixed asset funds and Fixed Income funds were also saw inflows this month of £861 million and £520 million respectively. 
  • £ Corporate Bond was once again the top-selling sector with net retail sales of £287 million
  • North American equity funds experienced a third month of outflows with £1.46 billion taken out from May to July. 

Chris Cummings, Chief Executive of the Investment Association, said:   

 
 

“As the rate of inflation starts to fall more markedly and recession expectations moderate, sentiment is becoming more positive. Whilst investors had been reducing their investments in recent months amidst a very unclear economic outlook, July saw net sales of just over £1bn. Equity, fixed income and mixed asset funds all benefited from this renewed optimism, with inflows into equity funds reaching £816 million – the highest since December 2021.” 

FUNDS UNDER MANAGEMENT AND NET SALES  

                                  Funds Under Management   Net Retail Sales   Net Institutional Sales   
July 2023 £1.44 trillion £1.0 billion -£7.47 billion
July 2022  £1.43 trillion  -£106 million -£9.35 billion 

BEST SELLING INVESTMENT ASSOCIATIONSECTORS   

 
 

The five best-selling Investment Association sectors for June 2023 were:  

  1. £ Corporate Bond with net retail sales of £287 million. 
  2. Volatility Managed with net retail sales of £251 million.  
  3. Global Equity Income followed with net retail sales of £243 million.  
  4. Corporate Bond with net retail sales of £209 million.  
  5. Short Term Money Market was fifth with net retail sales of £132 million. 

The worst-selling Investment Association sector in July 2023 was UK All Companies, which experienced outflows of £710 million.  

NET RETAIL SALES BY ASSET CLASS  

 
 

Mixed Asset funds saw inflows of £861 million. 

Equity funds saw inflows of £816 million. 

Fixed Income funds saw inflows of £520 million.  

 
 

Property funds experienced £86 million in outflows. 

Other funds saw £171 million in outflows. 

Money Market saw outflows of £912 million. 

 
 

NET RETAIL SALES OF EQUITY FUNDS BY REGION*  

Global funds saw net retail inflows of £318 million. 

Japan funds experienced inflows of £31 million. 

 
 

Asia funds saw net retail inflows of £18 million.  

Europe funds saw outflows of £47 million.  

North America funds saw outflows of £470 million.  

 
 

UK funds saw outflows of £1 billion. 

TRACKER FUNDS  

Tracker funds saw net retail inflows of £702 million in July 2023. Tracker funds under management stood at £301 billion at the end of July. Their overall share of industry funds under management was 20.9%. 

 
 

RESPONSIBLE INVESTMENT FUNDS   

Responsible investment funds saw a net retail outflow of £39 million in July 2023. Responsible investment funds under management stood at £98 billion at the end of July. Their overall share of industry funds under management was 6.8%.  

GROSS RETAIL SALES BY DISTRIBUTION CHANNEL   

 
 

Gross retail sales for UK fund platforms totalled £13.1 billion, representing a market share of 34.8%. 

Gross retail sales through other UK Intermediaries including IFAs totalled £12.4 billion, representing a market share of 32.9%. 

Gross retail sales for Discretionary Manager totalled £1.7 billion, representing a market share of 4.6%. 

Direct gross retail sales totalled £6.9 billion, representing a market share of 18.3%. 

In July, Execution only intermediaries totalled £480 million in gross retail sales and accounted for 1.3% of the market.  

Share this article

Related articles

2024: Has cash lost its crown?

2024: Has cash lost its crown?

During 2023, many investors swapped their stocks and shares ISAs for cash options. But as interest rates peak, will cash retain its crown in 2024? Nick Henshaw, Head of Intermediary Distribution at Wesleyan, explains all here. The new year is a natural time for us all...

How will markets react to Rishi’s gamble

How will markets react to Rishi’s gamble

Written by Gaël Fichan, head of fixed income at Syz Group The recent announcement of a snap election in the UK on July 4th has sparked discussions about its impact on both the political landscape and financial markets, particularly the Bank of England's (BoE) monetary...

Sign up to the IFA Magazine Newsletter

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, that fits perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode

x