UK savers took £129 million out of funds in July 2022, down from £4.5 billion in June, according to data published today by the Investment Association. This is the sixth month of net retail outflows this year.
Other key findings for July 2022 include:
• Fixed Income funds saw inflows of £893 million, marking the first month of inflows in the asset class this year, while Equity funds and Mixed Asset funds saw outflows of £1.6 billion and £117 million respectively.
• Short Term Money Market was the bestselling IA sector in July, with net retail inflows of £513 million, as investors take a wait and see approach amidst an uncertain outlook for markets. Corporate Bond was the second highest selling sector, with net retail sales of £495 million.
• Tracker funds rebounded this month, with inflows of £924 million, up from last month’s outflow of £41 million. The largest inflows were to fixed income trackers at £466 million.
• Responsible investment funds again saw inflows this month, with net retail sales of £198 million in July, up from last month’s inflows of £71 million.
Chris Cummings, Chief Executive of the Investment Association, said:
“The significant outflows we saw in June softened in July, with fixed income funds returning to inflows this month. While we saw some improvement in July, the overall outlook remains uncertain, illustrated by the recent surge in UK government bond yields. Equity funds continue to face challenges in the current market environment as the major central banks prepare for a further round of rate rises to combat inflation. Amidst this considerable market uncertainty, investors continue to weigh the push and pull factors of putting money aside to meet their longer-term financial goals and the impact of the escalating cost-of-living crisis on their ability to invest.”
FUNDS UNDER MANAGEMENT AND NET SALES
|
|
Funds Under Management |
Net Retail Sales |
Net Institutional Sales |
|
July 2022 |
£1.4 trillion |
-£129 million |
-£9.4 billion |
|
July 2021 |
£1.5 trillion |
£4.9 billion |
£3.2 billion |