Emma Wall, Head of Investment Analysis at HL, said:
“Usually fund flows dip over the summer – as investors shun markets for holidays, childcare and BBQs. But this August saw UK investors pour cash into the market, as lockdowns eased and market sentiment improved. Topping the best buy list were responsible investment funds, which covers funds invested with environmental, social and governance factors in mind, as well as exclusionary ethical funds and specialist impact funds. Investors are waking up to the fact that you don’t have to choose between ethics and profits anymore and opting to prioritise both. Regionally, global funds proved popular, while UK All Companies saw the least flows. The twin headwinds of Brexit and coronavirus means sentiment towards the UK remains divided. Investors should be careful not to write off the domestic market however, as the uncertainty has created some good value opportunities.”
- Net retail sales in August were £5.3 billion, an increase on July’s inflows of £4.8 billion.
- The five best-selling sectors for inflows in August were:
- Global: £838m
- Mixed Investment 40-85% Shares: £656m
- Short Term Money Market: £625m
- Volatility Managed: £403m
- Targeted Absolute Return: £198m
- North Americafunds experienced net retail inflows of £122 million, compared with inflows of £19 million in July.
- Japanfunds experienced inflows of £80 million, compared to inflows of £5 million in July.
- Property fundssaw £23 million of inflows.
- Responsible investment funds saw inflows of £1.3 billion, the 7th month in 2021 where inflows have exceeded £1 billion. Their overall share of industry funds under management was 5.4%.
- Global was again the best-selling IA sector for the sixth time in 2021, with net retail sales of £1 billion.
Out of favour:
- £445 million outflowed from UK equity funds, this compares to the inflows of £259 million seen in July.
- £354m was taken out of the UK All Companies
- Asiafunds experienced net retail outflows of £57 million.
|Most popular funds & trackers among HL clients in September (net) alphabetical||Most popular AI sectors among HL clients in September (net)|
|Baillie Gifford American||Global|
|Baillie Gifford Managed||Mixed Investment 40-85% Shares|
|Baillie Gifford Positive Change||UK All Companies|
|BlackRock Consensus 85||North America|
|Legal & General International Index Trust||UK Smaller Companies|
|Legal & General US Index||Europe Excluding UK|
|Lindsell Train Global Equity – Distributing||Global Emerging Mkts|
|Rathbone Global Opportunities||Technology & Telecoms|
|Schroder Managed Balanced||UK Equity Income|