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Responsible investment funds make up two thirds of total fund inflows in September, IA data shows

Responsible investment funds made up two thirds of total fund inflows in September, as savers invested £1.6 billion into responsible investment funds – the second highest month of inflows since March.

September retail fund data published today by the Investment Association (IA) also shows:

  • Total net retail sales were £2.3 billion.
  • Global was the best-selling IA sector in September with net retail sales of £955 million.
  • Tracker fund sales remained strong with inflows of £1.0 billion.
  • Property funds experienced inflows of £90 million, nearly four times higher than August inflows of £23 million.
  • UK equity funds saw outflows for the second consecutive month of £584 million.

 

Chris Cummings, Chief Executive of the Investment Association, said: “It is encouraging to see investors’ continuing commitment to sustainability in the run-up to the crucial COP26 negotiations. This is reflected in the strong inflows into responsible investment funds in September, which accounted for two-thirds of the total funds.

“The FTSE’s performance has been solid in recent months and the rebound in UK companies paying dividends continues, but investor appetite for UK equities has weakened for the second consecutive month. Uncertainty remains over the pace of economic recovery into 2022 and the outlook for inflation as supply chain and labour challenges continue to bite in the run up to Christmas.”

FUNDS UNDER MANAGEMENT AND NET SALES

Funds Under Management Net Retail Sales Net Institutional Sales
September 2021£1.5 trillion£2.3 billion-£2.2 billion
September 2020£1.3 trillion£1.6 billion-£1.3 billion

 

BEST SELLING INVESTMENT ASSOCIATION SECTORS 

The five best-selling Investment Association sectors for September 2021 were:

  1. Global was first with net retail sales of £955 million.
  2. Short Term Money Market was second with net retail sales of £502 million.
  3. Volatility Managed followed with net retail sales of £398 million.
  4. £ Strategic Bond was fourth with net retail sales of £236 million.
  5. Mixed Bond was fifth with £199 million.

 

The worst-selling Investment Association sector in September 2021 was UK All Companies, which experienced outflows of £341 million.

NET RETAIL SALES BY ASSET CLASS

Equity was the best-selling asset class in September 2021 with £984 million in net retail sales – the first time this figure has been under £1 billion since February.

Fixed Income was the second best-selling asset class, with £620 million of inflows.

Money Market funds experienced £610 million of inflows.

Mixed Asset funds experienced £365 million of inflows.

Property funds saw net retail sales of £90 million.

Other funds (which includes the Targeted Absolute Return, Volatility Managed, and Unclassified sectors) experienced outflows of £341 million.

NET RETAIL SALES OF EQUITY FUNDS BY REGION

Global was the best-selling equity fund region in September 2021, with net retail sales of £1.09 billion.

North America was second with net retail sales of £125 million.

Europe funds experienced net retail inflows of £58 million.

UK, Japan, and Asia funds all experienced outflows. The UK saw net retail outflows of £584 million, Asia funds experienced outflows of £140 million, and Japan funds had an outflow of £62 million.

TRACKER FUNDS

Tracker funds saw a net retail inflow of £1.0 billion in September 2021. Tracker funds under management stood at £285 billion as of the end of September. Their overall share of industry funds under management was 18.4%.

RESPONSIBLE INVESTMENT FUNDS

Responsible investment funds saw a net retail inflow of £1.6 billion in September 2021. Responsible investment funds under management stood at £85 billion as of the end of September. Their overall share of industry funds under management was 5.5%.

GROSS RETAIL SALES BY DISTRIBUTION CHANNEL

In September, gross retail sales for UK fund platforms totalled £13.2 billion, representing a market share of 49.7%.

Gross retail sales through Other UK Intermediaries including IFAs were £7.05 billion, representing a market share of 26.5%.

Direct gross retail sales in September were £1.04 billion, representing a market share of 3.9%.

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