2023 Starts Positive For Fund Flows But Uncertainty Remains – IA Data

Published on

UK investors put £1.4 billion into funds in January, following December’s outflow of £281 million, according to data published today by the Investment Association (IA).

Key findings for January 2023 include:

  • Bond funds saw the highest inflows in January at £1.6 billion, up from £392 million in December.
  • Equity funds saw outflows increase to £913 million in January from £355 million in December.

Get The Full Henry Singleton Series in PDF

Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q4 2022 hedge fund letters, conferences and more


  • UK equities outflows were £1.4 billion. European equity outflows softened to £155 million. The North America and Asia regions both saw inflows at £363 million and £133 million respectively.
  • North America remained the bestselling IA sector for the third month in a row, with inflows of £364 million.
  • UK All Companies saw the highest outflow in January for the third month in a row at £1.3 billion, a slight increase from December’s £1 billion outflow.
  • Tracker funds continued to see inflows at £982 million in January.
  • Responsible investment funds returned to outflow at £259 million in January, following weaker net retail sales in the last quarter of 2022.

Investors Pour Into UK Funds

Emma Wall, head of investment analysis:

“Bond funds saw the highest inflows in January - up 300% from December - with UK Gilts and Corporate and Government Bond leading the bestselling IA sectors. The worst-selling Investment Association sector in January 2023 was UK All Companies, which experienced outflows of £1.3 billion.

European equity outflows saw the smallest outflow since February 2022, when Russia invaded Ukraine. But, one year on from the devastating invasion of Ukraine, investors are re-considering the outlook for Europe. According to the HL Investor Confidence survey, conviction increased particularly in European markets this month. Despite this increase in confidence, the context remains extremely challenging.


This month, the most bought funds are almost all equities – replacing the total return and capital preservation picks we saw hit the tables in times of stress last year. Global equities have fallen back into favour, alongside energy and renewables.

Income is particularly popular, as investors battle the value erosion of rising prices, across both fund and investment trust investors, with four income selections from the Wealth Shortlist featuring in the most bought list, and dividend heroes such as City of London in the most bought trusts list.”

Data from HL's platform:

Top 20 Funds, Jan 2023 (net buys, alphabetical)
Artemis High Income
Baillie Gifford American
EdenTree Responsible and Sustainable Managed Inc
Fidelity Index World
Fundsmith Equity
Jupiter Asian Income
Jupiter Global Value Equity
Jupiter Income
Legal & General European Index
Legal & General International Index Trust
Legal & General UK 100 Index Trust
Legal & General US Index
Polar Capital Global Insurance
Pyrford Global Total Return
Royal London Short Term Money Market
Schroder Managed Balanced
Vanguard FTSE Global All Cap Index
Vanguard Global Equity Income
Vanguard LifeStrategy 100% Equity
Vanguard LifeStrategy 80% Equity

Signup to ValueWalk!

Get the latest posts on what's happening in the hedge fund and investing world sent straight to your inbox! 
This is information you won't get anywhere else!