UK investors remain optimistic about the prospects for their home market – Investment Association statistics
Q1 2021 hedge fund letters, conferences and more
UK investors remain optimistic about the prospects for their home market according to the latest set of Investment Association (IA) data, released today which tells us where investors were putting their money in April 2021.
- The UK Smaller Companies inflow was the highest since the record £279m in December 2019.
- Global was most popular with net retail sales of £1.7 billion.
- UK Gilts was fifth with net retail sales of £256 million.
- £6.2bn was invested in April, of which £1.5 billion was wrapped by ISAs. This is £79 million more into ISAs than over the previous 12 months.
- UK funds experienced £46 million of net retail inflows.
UK Investors Are Optimistic For Their Home Market
Kate Marshall, Acting Head of Investment Analysis at HL, said:
“UK investors remain optimistic about the prospects for their home market, according to the latest industry data. A successful vaccine rollout, the reopening of the economy, and the prospect of a rebound in consumer spending means many investors are feeling more hopeful about the future. This increase in risk appetite can also be seen in the popularity of UK Smaller Companies funds, which saw the highest inflow since the record in December 2019. Smaller businesses tend to be more domestically focused than their multinational mega-cap peers and have the chance to benefit as the economy gets back on its feet.
Once again though, Global funds remain the best sellers, and their popularity currently shows no sign of slowing down. Tracker fund sales also rebounded in April, reminding us that some investors continue to favour the simplified, low-cost approach of passive investing to form at least a part of their portfolios.”
In addition,
- Tracker fund sales rebounded in April as net retail sales reached £2.9 billion compared with sales of £626 million in March.
- Equity fund sales were the highest of any asset class at £2.9 billion and the IA’s Global sector remained the best-selling sector with net retail sales of £1.7 billion.
- Despite inflation concerns, sales to fixed income funds remained strong - attracting £1.3 billion in net retail inflows, which is a £230 million increase on March.
Outflows
- The worst-selling Investment Association sector in April 2021 was Corporate Bond with an outflow of £263 million.
- Property funds however experienced £38 million in net retail outflows.
In May 2021, Hargreaves Lansdown clients were buying in to the following IA sectors.
Top IA sectors at HL in May (net) |
Global |
UK All Companies |
Overseas |
UK Smaller Companies |
AIM Listing |
Travel and Leisure |
Mixed Investment 40-85% Shares |
Mobile Telecommunications |
Software/Computer Svs |
Global Equity Income |
In May 2021 HL clients were buying the following shares, overseas shares, funds and trackers. Please note this is net buys (so buys less sells) and in alphabetical order.
Top traded UK and overseas shares in May (net)
alphabetical order |
Top traded funds and trackers in May (net) alphabetical order |
AMC Entertainment Holdings Inc | Chelverton UK Equity Growth |
Cineworld Group plc | Fundsmith Equity |
Coinbase Global Inc | HSBC FTSE 250 Index |
Darktrace plc | Legal & General International Index Trust |
Gamestop Corporation | Legal & General UK 100 Index Trust |
International Consolidated Airlines Group SA | Legal & General US Index |
ITM Power plc | Marlborough Nano-Cap Growth |
National Grid | Marlborough UK Micro-Cap Growth |
Tesla Inc | Rathbone Global Opportunities |
Vodafone Group plc | Vanguard LifeStrategy 100% Equity |
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