The UK Fund Market Sees Highest Level Of Half-Year Sales Since 2017

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The UK Fund Market Sees Highest Level Of Half-Year Sales Since 2017
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The UK fund market sees highest level of half-year sales since 2017 – Investment Association statistics

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The UK fund market has had a strong first half of 2021, according to the latest set of Investment Association (IA) data, released today.

  • Total net retail sales for the first half of 2021 were £24bn, the highest since 2017.
  • Tracker funds accounted for just over half of June’s total net retail sales, which came in at £4.2bn.
  • The Global sector was the most popular with net retail sales of £1.1bn.
  • UK funds in total saw net retail sales of -£77m but this reflected ongoing outflows from UK Equity Income, while UK All Companies funds experienced net retail sales of £159m.

Performance Of The UK Fund Market

Tom Mills, Senior Investment Analyst at Hargreaves Lansdown:

“The Global sector was the best-selling IA sector in June, and Equities as a whole were the best-selling asset class, indicating that UK investors continue to have a positive outlook for global share markets, which have benefitted from the ongoing economic recovery. Despite the strong performance of UK shares so far in 2021, the UK was the only equity fund region to see net outflows in June. But this mostly came from persistent outflows in UK equity income funds, which have been reducing in popularity, while UK All Companies funds attracted net inflows in June.

The latest figures also show that responsible investment continues to grow in popularity with UK investors. Responsible investment funds accounted for almost a quarter of total retail net flows in June. They currently represent 5.1% of industry funds under management and have the potential to grow this share, with investors able to access to an increasing number of options in this area.  Rising inflation is also an important consideration for investors and the new Global Inflation Linked Bonds Sector was the fourth best-selling IA sector during June, and the best-selling of the fixed income sectors. Inflation linked bonds are designed to provide a shelter against inflation.”

Best-selling Investment Association sectors for June 2021 were:

  • Global was first with net retail sales of £1.1 billion.
  • Mixed Investment 40-85% Shares was second with net retail sales of £910 million.
  • Volatility Managed followed with net retail sales of £363 million.
  • Global Inflation Linked Bond was fourth with net retail sales of £214 million.
  • Europe Excluding UK was fifth with net retail sales of £212 million.

Outflows:

  • The worst-selling Investment Association sector in June 2021 was Short Term Money Market with an outflow of £389 million.
  • UK funds was the only equity fund region that experienced outflows, with net retail sales of -£77 million.
Top IA sectors at HL in June (net)
Global
AIM Listing
North America
Life Insurance
Oversea
Banks
Mixed Investment 40-85% Shares
Europe Excluding UK
Travel and Leisure
UK All Companies

About Hargreaves Lansdown

Over 1.6 million clients trust us with £132.9 billion (as at 30 April 2021), making us the UK’s largest digital wealth management service. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

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Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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